Derivative Contracts Provide ________

question 32

Multiple Choice

Derivative contracts provide ________.

• A) issuers and investors an expensive but efficient way of controlling some major risks.
• B) issuers and investors an inexpensive way of controlling some major risks.
• C) issuers and investors an inexpensive but inefficient way of controlling all major risks.
• D) issuers and investors an expensive way of controlling some minor risks.

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Definitions:

Independent Variables

Factors that are manipulated or controlled in an experiment to determine their effects on dependent variables.

Multiple Regression Model

A statistical technique that models the relationship between a dependent variable and two or more independent variables.

Independent Variable

The variable in an experiment or study that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Dependent Variable

The variable in an experiment or study that is expected to change as a result of manipulations of the independent variable.