9.1 Learning Outcomes:
Explain some of the reasons for and against hedging.
Describe the different methods (price sensitivity, minimum variance) of determining the number of futures contracts to use in a hedge.
Compare and contrast selected target strategies, including targeted duration, alpha capture, targeted beta, and tactical asset allocation.
9.2 Action Required:
Chapter: 11
Videos
Watch the short video in the following link:
9.3 Test your Knowledge (Question):
Q. State and explain two reasons why firms hedge.
9.4 Instructions:
- Post your answer in the discussion board using the discussion link below (Week9:Interactive learning Discussion)
- your answer needs not to exceed 100 words.