Multiple Choice
Consider an electric utility that may use either coal or natural gas to generate electricity. Under which of the following conditions is co-firing equipment most valuable? Let ac be the annual standard deviation of coal prices, and let an be the annual standard deviation of natural gas prices and p the correlation between coal prices and natural gas prices.
A) ac high, an high, p low
B) ac high, an low, p low
C) ac low, an high, p low
D) ac low, an low, p high
Correct Answer:
Verified
Correct Answer:
Verified
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