Hedging Is

question 1

Multiple Choice

Hedging is

• A) matching the maturities of assets and liabilities to reduce risk.
• B) a risk reduction strategy.
• C) almost impossible to achieve perfectly in practice.
• D) all of the other answers are correct

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Definitions:

Fidelity

The principle of loyalty, faithfulness, and the obligation to keep promises and commitments in professional and personal relationships.

Justice

A principle or concept of moral rightness based on ethics, law, fairness, and equity that also seeks punishment for those who breach these ideals.

Utilitarianism

An ethical theory that determines right from wrong by focusing on outcomes and the greatest happiness for the greatest number of people.

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