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pantera1 [17]
2 years ago
6

Suppose that the standard deviation of quarterly changes in the prices of a commodity is $0.65, the standard deviation of quarte

rly changes in a futures price on the commodity is $0.81, and the coefficient of correlation between the two changes is 0.8. What is the optimal hedge ratio for a three-month contract? What does it mean?
Business
1 answer:
Natasha_Volkova [10]2 years ago
6 0

Answer:

The optimal hedge is 0.642 and it means that the size of the future positions should be 64.2% of the exposure of the company in a 3 month-hedge.

Explanation:

optimal hedge ratio

= coefficient of correlation*(standard deviation of quarterly changes in the prices of a commodity/standard deviation of quarterly changes in a futures price on the commodity)

= 0..8*(0.65/0.81)

= 0.642

Therefore, The optimal hedge is 0.642 and it means that the size of the future positions should be 64.2% of the exposure of the company in a 3 month-hedge.

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Wanda is at work, on the clock, and is working on her private commercial business. She receives a reprimand from her supervisor.
Darina [25.2K]

Answer:

Her organization is permitted to monitor and the company's gadget she uses.

Explanation:

The fact that she is still an employee I that organization, the organization has the right to monitor her activities in the working environment. She has to get herself comported and follow the work I g ethics of the firm.

7 0
2 years ago
Read 2 more answers
A society can produce two goods: donuts and beer. The society's production possibility frontier is negatively sloped and "bowed
monitta

Answer:

c. increases

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

The production possibility frontier is graph that shows the two combinations of goods that an economy can produce given its resocurces.

As the production of donuts increases, the amount of beers that would be forgone in order to increase production of donuts rises.

I hope my answer helps you

5 0
2 years ago
Annie is self-employed and has $58,000 in income from her business. She also has investments that generated dividends of $3,000
8090 [49]
First, you need to know the self-employment taxes:
The self-employment tax is 92.35%
Social security tax is 12.4% and Medicare tax is 2.9% = (15.3%)

Dividends and interest are not a part of the income.

58000 * 92.35% *15.3% 
Turn the percentages into decimal form in order to multiply. You can do this by moving the decimals over twice or dividing each percentage by 100. 

58000*.9235 * .153 = $8,195.

Annie's self-employment tax for the year is $8,195. 
7 0
2 years ago
What show type options are available for PowerPoint presentations? Check all that apply.
atroni [7]

Answer:

Browsed by an individual (Window)

Browsed at a Kiosk (Full Screen)

Presented by a Speaker (Full Screen)

Explanation:

The main objective of the show type option in the Microsoft presentation is used for the displaying the slide in the particular manner or the sequence as well for the purpose of setting the slide .

Following are Steps to use the show type in the presentation .

  1. Click on the file tab in the PowerPoint presentations.
  2. After that Select the slide set up show Option from there .
  3. We see that there is dialog box is display .
  4. In the dialog box  we see that show type only three option are available i.e
  • Browsed by an individual (Window)
  • Browsed at a Kiosk (Full Screen)
  • Presented by a Speaker (Full Screen)
  • The user will choose the option according to there need .
  • Click on apply the particular option is reflected on the slide .
  • All the other option are not appear in the show type that's why these are incorrect option .

5 0
2 years ago
Fenton Manufacturing Company at June 30: Cash in bank account $ 6,455 Inventory of postage stamps $ 74 Money market fund balance
Dmitrij [34]

Answer:

$19,462

Explanation:

The computation of the cash and cash equivalent is shown below:

= Cash in bank account + Money market fund balance + petty cash balance + money orders

= $6,455 + $12,400 + $350 + $257

= $19,462

It includes only cash in bank account, balance in money market, petty cash balance and the money orders

All other information which is given is not relevant. Hence, ignored it

5 0
2 years ago
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