Question
Price risk is the risk of a decline in the value of a
security or a portfolio. How can one transfer price risk?Solution
Hedging means reducing or controlling risk. This is done by taking a position in the futures market that is opposite to the one in the physical market with the objective of reducing or limiting risks associated with price changes.
If (a + b) = 1 and (1/a) – 2b = 5/a then find the value of a2 + b2.
For which value of k does the quadratic equation
x² − 4(k + 1)x + (3k² + 8k + 4) = 0
have equal real roots?
Find the value of ‘x’ in the given expression:
(49/16)x × (64/343)x-1 = 4/7
If p = 40 - q - r and pq + r(q + p) = 432, then find the value of (p² + q² + r²).
If x = (2+√3)/(2-√3), y = (2-√3)/(2+√3)
Then find out the value of (x²+y²-xy)/(x²+y²+xy)
If p = 24 - q - r and pq + r(q + p) = 132, then find the value of (p² + q² + r²).
if a2 + b2 + c2Â =Â 2(4a -5b -6c)-77 , then a-b-c = ?
If 1/(x+ 1/(y+ 1/z)) = 13/30, then find x+y+z= ?
Simplify the following expression:Â (8x - 6y - 5z)Â 2
Solve the system:
x + 2y = 13
3x − y = 5
What is the value of 2x + y?