____________ Is a Form of Insurance, to Move Risk from Someone

question 113

Multiple Choice

____________ is a form of insurance, to move risk from someone major loss to someone who could absorb the loss, or is able to hedge against the risk by buying some other derivative.

• A) Future
• B) Option
• C) Swap
• D) All the derivatives

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Definitions:

Herfindahl-Hirschman Index

A measure used to assess the market concentration and competition level within an industry, calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.

Market Share

The portion of a market controlled by a particular company or product, indicative of competitiveness.

Herfindahl Index

Measures the concentration of market power within an industry, calculated by summing the squares of the market share percentages held by the various firms within the market.

Herfindahl-Hirschman Index

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration used to determine the level of competition within an industry, calculated by squaring the market share of each firm competing in the market and summing the resulting numbers.