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Which of the Following Conclusions Are Correct

Question 49

Multiple Choice

Which of the following conclusions are correct?


A) Most of the volatility of the dollar value of the Israeli asset can be removed by hedging exchange risk because b2[Var(S) ] and Var(e) are 236,717 ($) 2 and 493,751 ($) 2 respectively.
B) Most of the volatility of the dollar value of the Israeli asset cannot be removed by hedging exchange risk because b2[Var(S) ] and Var(e) are 236,717 ($) 2 and 493,751 ($) 2 respectively.
C) Most of the volatility of the dollar value of the Israeli asset cannot be removed by hedging exchange risk because b2[Var(S) ] and Var(e) are 8.22 ($) 2 and 59,211 ($) 2, respectively.
D) Most of the volatility of the dollar value of the Israeli asset can be removed by hedging exchange risk because b2[Var(S) ] and Var(e) are 8.22 ($) 2 and 59,211 ($) 2 respectively.

Correct Answer:

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