Derivatives Can Be Used to Either Hedge or Speculate

question 11

Multiple Choice

Derivatives can be used to either hedge or speculate. These actions:

• A) increase risk in both cases.
• B) decrease risk in both cases.
• C) spread or minimize risk in both cases.
• D) offsets risk by hedging and increase risk by speculating.
• E) offset risks by speculating and increase risk by hedging.

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Definitions:

Statistically Valid

The degree to which conclusions derived from a statistical analysis are reliable and meaningful, based on the methodology and sample size.

Gender-Role Stereotypes

Social and cultural expectations about the behaviors and attitudes appropriate for each gender.

Social Learning

The process of acquiring behaviors, skills, attitudes, or beliefs through observation of and interaction with others.

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attractions to men, women, or both sexes, as well as the absence of these attractions.