Using the information in Table 4.9 about Scenario C: a. Using your answer to the previous question, use equation (4.7) to compute the variance-minimizing hedge ratio. b. Run a regression of revenue on...

Using the information in Table 4.9 about Scenario C:

a. Using your answer to the previous question, use equation (4.7) to compute the variance-minimizing hedge ratio.

b. Run a regression of revenue on price to compute the variance-minimizing hedge ratio.

c. What is the variability of optimally hedged revenue?

equation (4.7)