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:

Pericycle

Of a root, outer layer of the vascular cylinder; a thin layer of cells that retain the ability to divide and differentiate.

Vascular Tissue

The specialized tissue in plants that conducts water, nutrients, and energy throughout the plant body.

Epidermis

The outermost layer of cells covering an organism, notably the skin of animals or outer layer of leaves in plants.