Which of the Following Statements About Hedging of Business Risks

question 32

Multiple Choice

Which of the following statements about hedging of business risks by investors is (are) correct?
I. Operational information about companies is widely available and investors find it relatively simple to hedge business risk.
II. Investors have the necessary capital required to implement hedging strategies and do so consistently.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements I and II are correct.
• D) Neither statement I nor II is correct.

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Definitions:

Long-Arm Jurisdiction

Long-Arm Jurisdiction refers to a court's ability to exercise authority over a defendant from another state or country, provided the defendant has sufficient connections to the jurisdiction.

In Rem Jurisdiction

Refers to a court's power over an item of property, rather than over a person.

Mediation

A form of alternative dispute resolution where a neutral third party helps disputing parties find a mutually satisfactory resolution.

Counterclaim

A legal claim brought against the plaintiff by the defendant, typically in response to the original lawsuit.