Question
Heating oil spot prices have a variance of 0.21 whereas crude oil futures prices have a variance of 0.32. The correlation between heating oil
Heating oil spot prices have a variance of 0.21 whereas crude oil futures prices have a variance of 0.32. The correlation between heating oil spot prices and crude oil futures prices is 0.65. What is the minimum variance hedge ratio for hedging heating oil prices with crude oil futures?
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Introductory Statistics Exploring The World Through Data
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