The Minimum Variance Hedge Ratio Uses Current Information While the Price

question 41

True/False

The minimum variance hedge ratio uses current information while the price sensitivity hedge ratio uses past information.

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Definitions:

Probability Distribution

A function in mathematics that calculates the probability of each possible result of an experiment.

Soccer Team

A group of players forming one side in a competitive game of soccer.

Probability Distribution

Describes how the values of a random variable are distributed, showing all the possible values and how often they occur.