Hedging Risk and Spreading Risk Are Two Ways To

question 98

Multiple Choice

Hedging risk and spreading risk are two ways to:

• A) increase expected returns from a portfolio.
• B) diversify a portfolio.
• C) lower transaction costs.
• D) match up perfectly positively correlated assets.

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Definitions:

Notice to Terminate

A formal notification, often in writing, informing one party of the other party's intention to end an agreement or contract at a specified time.

License

A permit or authorization granted by an authority to engage in a particular activity or to use a particular property.

Revocation

The act of officially cancelling or withdrawing something, such as a law, license, privilege, or promise.

License

A permit or authorization granted by a competent authority or the owner to use a particular property, asset, or intellectual property under certain conditions.