Please answer all the problems

changes is 0.20 and the correlation coefficient between them is 0.67. a) Compute the variance of a portfolio hedged using the optimal hedge ratio. b) Compare the variance in part (a) to the variance of an unhedged spot position. c) Compute the variance of a hedged portfolio with hedge ratio of 0.5 when the spot and futures prices are uncorrelated. apposition hedged by a forward contract on 75 stocks for every 100 stocks in the spot market. d) Compute the variance of changes is 0.20 and the correlation coefficient between them is 0.67. a) Compute the variance of a portfolio hedged using the optimal hedge ratio. b) Compare the variance in part (a) to the variance of an unhedged spot position. c) Compute the variance of a hedged portfolio with hedge ratio of 0.5 when the spot and futures prices are uncorrelated. apposition hedged by a forward contract on 75 stocks for every 100 stocks in the spot market. d) Compute the variance of