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Areunutz Corporations 10-year hedging strategy resulted in a stream of income changes with annual variance, s 2 =$2,000,000. If the company had not hedged, the

  1. Areunutz Corporations 10-year hedging strategy resulted in a stream of income changes with annual variance, s2=$2,000,000. If the company had not hedged, the CFO estimates that the annual s2 of the changes in income would have been $2,100,000. The CFOs hedging effectiveness is _____.

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