(a) Of total variation (variance) in equity-return, whats the proportion caused by short-term interest rate fluctuations?

(b) What is the estimated exposure to short-term interest rate fluctuations over the four-year period?

(c) What type of interest rate swap with respect to notional principal (the NOK-amount) and the position (long or short), is required to hedge the estimated interest rate exposure?

(d) To what extent does the swap-contract suggested in part (c) seem to do the trick in terms of hedging the interest rate exposure?