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When a parent says to a child who is running on the sidewalk, "We walk on the sidewalk because if we run on the sidewalk, we might fall down and get hurt," that parent is using
Which of the following strategies?
Time Varying Stock Price Volatility
Refers to the fluctuation in stock prices over time, showing variability in the rate of returns under different market conditions.
Changing Expected Returns
The alteration in the anticipated returns on an investment due to changes in market conditions, company performance, or other factors.
Dynamic Hedging
A strategy that involves adjusting the hedge position dynamically as market conditions change, used to manage risk in trading portfolios.
Static Hedging
A financial strategy that involves setting up a position in options or other securities to mitigate risk, without needing to adjust the position frequently.
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