The __________ Is a Hedge of the Exposure to the Variability

question 3

Multiple Choice

The __________ is a hedge of the exposure to the variability in cash flows that is attributable to a particular risk that is associated with all, or some component of, a recognised asset or liability.

• A) fair value hedge
• B) hedge of a net investment in a foreign operation
• C) cash flow hedge
• D) all of the above

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Definitions:

Least Squares Method

The method used to develop the estimated regression equation. It minimizes the sum of squared residuals (the deviations between the observed values of the dependent variable, yi, and the predicted values of the dependent variable, ŷi).

Observed Values

The actual measurements or data collected in an experiment or study.

Predicted Values

The outcomes or values estimated based on a mathematical model or prediction equation.

Y-intercept

The point on a graph where a line intersects the Y-axis, often used to represent the starting value of a relationship in linear equations.