Price changes of two gold-mining stocks have shown strong positive correlation. Their historical relationship is: Average percentage change in A=0.001+0.65 (percentage change in B ) Changes in B explain 60% of the variation of the changes in A(R2=0.6). a. Suppose you own $120,000 of A. How much of B should you sell to minimize the risk of your net position? b. What is the hedge ratio? Note: Round your answer to 2 decimal places. Here is the historical relationship between stock A and gold prices: Average percentage change in A=0.002+1.44 (percentage change in gold price) C-1. If R2=0.40, can you lower the risk of your net position by hedging with gold (or gold futures) rather than with stock B? c2. Will this provide as good of a hedge as the sale of stock B