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QUESTION 4 Suppose that the standard deviation of quarterly changes in the prices of a commodity is $0.59, the standard deviation of quarterly changes in

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QUESTION 4 Suppose that the standard deviation of quarterly changes in the prices of a commodity is $0.59, the standard deviation of quarterly changes in a futures price on the commodity is $0.81, and the coefficient of correlation between the two changes is 0.7. What is the optimal hedge ratio for a three-month contract? Round up your answer to three decimals places

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