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A corporation wants to cross-hedge with future contracts. Using linear regression, a financial analyst has calculated the items shown in the table below. If the

A corporation wants to cross-hedge with future contracts. Using linear regression, a financial analyst has calculated the items shown in the table below. If the corporation uses the optimal number of contracts how much of the variance can be eliminated by hedging?

intercept-0.00935

beta-0.497

standard error of beta-0.173

R-squared 0.976

degree of freedom-73

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