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Question
What does a low value of R2 indicate?
A. It means the degree of confidence increases in the use of futures contracts, with a given hedge ratio estimate, to hedge cash asset-risk position.
B. It means that we have little confidence that the slope coefficient from the regression is actually the true hedge ratio.
C. It indicates that there is no statistical association at all between spot rates and future prices.
D. It indicates that the regression line does not fit the scatter of observations.
E. It indicates a low value of hedging ineffectiveness.
Answer
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Related questions
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A. has publicly-traded common stock.
B. provides equity funds to companies that already have publicly traded common stock.
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