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NEW QUESTION: 1
An asset has a volatility of 10% per year. An investment manager chooses to hedge it with another asset that has a volatility of 9% per year and a correlation of 0.9. Calculate the hedge ratio.
A. 0
B. 0.81
C. 0.9
D. 1.2345
Answer: A
Explanation:
Explanation
The minimum variance hedge ratio answers the question of how much of the hedge to buy to hedge a given position. It minimizes the combined volatility of the primary and the hedge position. The minimum variance hedge ratio is given by the expression [ (x) / (y) ] * (x,y)]. Effectively, this is the same as the beta of the primary position with respect to the hedge.
In this case, the hedge ratio is = 10%/9% * 0.9 = 1

NEW QUESTION: 2
You need to display the values for the Document Status and Department properties.
You configure variations on the site.
Does the solution meet the goal?
A. Yes
B. No
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The requirement is to change the values of metadata field settings from a single location and changes to the settings should be applied to all the site collections and existing documents. So Term Set and Managed Metadata column is the preferred way to implement the Document Status and Department properties.

NEW QUESTION: 3

A. Option B
B. Option A
C. Option C
D. Option D
Answer: D