Examlex
Which of the following statements about hedging is (are) true?
I.Hedging is a form of risk transfer.
II.Hedging is used to address the risk of unfavorable price fluctuations.
Required Rate
The minimum expected rate of return by investors for providing capital to a company, often used in valuing investments.
Constant Dividend
A fixed amount of money paid to shareholders of a corporation out of its earnings on a regular basis.
Required Return
The minimum expected return an investor seeks on an investment, factoring in the risk associated with it.
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