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Ali is holding 20,000 kilograms stocks of palm oil. Suppose the price of 1,000 kilograms of palm oil in the cash market is RM2,500. He

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Ali is holding 20,000 kilograms stocks of palm oil. Suppose the price of 1,000 kilograms of palm oil in the cash market is RM2,500. He wants to hedge against the decline in palm oil prices so that it does not have a severe effect on the value of his investment. a) Discuss the actions that Ali should do to achieve this purpose. (4 Marks) b) Compute the value of his portfolio when the spot price: i) drops to RM1,400 (4 Marks) ii) increases to RM1,900 (4 Marks) (Total: 12 Marks) a) Identify and provide an example of sampling technique to be applied when a researcher draws every nth element in the population starting with a randomly chosen sample between 1 and n. (3 Marks) b) A reliable and valid sample should enable us to generalize the findings from the sample to the population under investigation as proposed by Roscoe (1975). Identify THREE (3) steps taken by your research group in identifying the sample size of the study. (3 Marks) [Total: 6 Marks]

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