Hedging Refers to

question 55

Multiple Choice

Hedging refers to

• A) avoiding high-risk investment opportunities.
• B) a transaction that reduces risk exposure.
• C) the same thing as asset diversification.
• D) avoiding the financial futures market.

---

Definitions:

Physiologically Arousing

Events or stimuli that lead to an increase in physical or emotional activation.

Affect Balance

The ratio of positive to negative emotional experiences in one's life.

Positive Emotional Experiences

Occurrences that induce feelings of happiness, joy, or other pleasurable emotions.

Affect Balance

The ratio of positive to negative affect or emotions experienced, reflecting an individual's overall emotional well-being.