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Question 1 (1 point) Hedge A with (B,C,D). Rank the hedges from best to worst B: Ret(A)=1%+0.6*Ret(B)+eps; R2=80% C: Ret(A)=0.8%+0.8*Ret(C)+eps; R2=40% D: Ret(A)=1.2%+1*Ret(D)+eps; R2=60% ODCB
Question 1 (1 point) Hedge A with (B,C,D). Rank the hedges from best to worst B: Ret(A)=1%+0.6*Ret(B)+eps; R2=80% C: Ret(A)=0.8%+0.8*Ret(C)+eps; R2=40% D: Ret(A)=1.2%+1*Ret(D)+eps; R2=60% ODCB ODBC O BCD OBDC Question 2 (1 point) You want to buy Ford stock because it's undervalued. What is the best hedge? Michigan municipal bonds E-mini S&P 500 futures Auto ETF Tesla stock
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