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COGNITIVE ASSESSMENT How often should you change your password?
Hedging Risk
The process of making an investment or entering into a financial transaction in order to reduce the risk of adverse price movements in an asset.
Exchange-rate Risk
The risk of losing money due to unfavorable changes in exchange rates when investing in foreign-denominated securities.
Hedged
In investment, using strategies to reduce or eliminate the risk of adverse price movements in an asset.
Futures Contract
A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used for commodities or financial instruments.
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