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7)Suppose a financial institution hedges a portfolio of FRAs with interest rate futures. The yield curve shifts, and the value of the hedge portfolio increases

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7)Suppose a financial institution hedges a portfolio of FRAs with interest rate futures. The yield curve shifts, and the value of the hedge portfolio increases by $1,678 while the FRAs alone lost $21,000. What is the hedge efficiency for a status quo hedge objective

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