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If a farmer sells his corn forward on the harvest date, what risks have increased, and what risks have decreased, compared to not selling forward?
If a farmer sells his corn forward on the harvest date, what risks have increased, and what risks have decreased, compared to not selling forward?
Use monthly data to compute the volatility and correlation between the NASDAQ and S&P returns over the last 1 year, over the last 2 years, and over the last 5 years. Show your results on a graph.
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