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:

Spanish Power

Refers to the period of Spanish global dominance from the late 15th to early 17th centuries, characterized by vast colonial expansion, wealth from the Americas, and military strength.

Military Strength

The capacity and capabilities of armed forces to conduct operations, including personnel, equipment, and logistical support.

Presidio

A fortified military settlement used in Spain and the Spanish Empire, often in areas under threat of invasion or attack.

San Antonio

A major city in south-central Texas with a rich colonial heritage, known for the Alamo and the River Walk, juxtaposing historical significance with modern growth.