An Example of Hedging in Order to Control Risk Would

question 5

Multiple Choice

An example of hedging in order to control risk would be:

• A)Car makers reducing the number of models that will be manufactured this year.
• B)Toy stores placing orders in December for toys needed by Christmas.
• C)Airline companies attempting to lock in the price paid for fuel.
• D)Fashion designers offering showings of their new clothing line in several major cities.

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Definitions:

Depression and Stress

psychological conditions where depression involves persistent feelings of sadness and loss of interest, while stress involves feelings of strain and pressure.

Emotional States

Various types of feelings that influence behavior, including happiness, anger, sadness, and fear.

Perceived Ability

An individual's belief about how well they can perform or succeed in a particular task or activity.

Coping with Stress

Coping with stress involves employing strategies or behaviors to manage or reduce the psychological strain caused by stressors.