Explain How Speculation Makes Hedging Possible

question 8

Essay

Explain how speculation makes hedging possible.
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Evaluate the role of weapons in the execution and consequences of robbery.

Discern the relationship between economic conditions and the rate of robberies.

Understand the characteristics and motivations behind shoplifting and burglary.

Comprehend the challenges in curbing organized crime and its infiltration into legitimate businesses.

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Definitions:

Per Share

A term used to describe a financial ratio or statistic as it relates to one individual share of stock.

Annual Dividends

The total amount of dividend payments a company pays out to its shareholders in one year.

Desired Rate of Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account the asset's risk level.

Share

A unit of ownership in a company that entitles the holder to a proportion of the corporation's assets and profits.