Using a Linear Regression of Changes in Spot Asset Prices $R ^ { 2 }$

question 15

Multiple Choice

Using a linear regression of changes in spot asset prices on changes in futures asset prices, the minimum-variance hedge ratio may be obtained

• A) As the intercept coefficient in the regression.
• B) As the slope coefficient in the regression.
• C) As the \(R ^ { 2 }\) of the regression.
• D) As the square-root of the variance of the residuals from the regression.

---

Definitions:

Nominal Group Techniques

A structured method for group brainstorming that encourages contributions from everyone.

Synergy

A positive force that occurs in groups when group members are stimulated to produce new solutions to problems through the process of mutual influence and encouragement within the group.

Cognitive Consonance

An error in key-term, possibly meant "Cognitive Dissonance." NO.

Creativity

The ability to produce original, innovative ideas, solutions, or products through imaginative thinking and problem-solving.