It Is Difficult to Construct a Perfectly Hedged Financial Plan

question 46

Multiple Choice

It is difficult to construct a perfectly hedged financial plan because:

• A) it is easy to determine which part of assets is temporary and which part is permanent.
• B) it is difficult to liquidate current assets.
• C) a financial manager is sure how much short or long-term financing is available at a given time.
• D) exact timing of asset liquidation is difficult.

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Definitions:

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The pulse felt at the wrist on the same side as the thumb, commonly used to measure heart rate.

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Additional oxygen provided to improve oxygenation in patients who are unable to maintain adequate levels on their own.