Which of the Following Is True

question 2

Multiple Choice

Which of the following is true?

• A) Hedging can always be done more easily by a company's shareholders than by the company itself
• B) If all companies in an industry hedge, a company in the industry can sometimes reduce its risk by choosing not to hedge
• C) If all companies in an industry do not hedge, a company in the industry can reduce its risk by hedging
• D) If all companies in an industry do not hedge, a company is liable increase its risk by hedging

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Definitions:

Computer

An electronic device capable of processing, storing, and retrieving data, executing tasks based on programmable instructions.

ATM Card

A plastic card issued by financial institutions that allows customers to access their accounts and perform transactions at Automated Teller Machines.

Television Remote

A handheld device used to operate a television from a short distance away, allowing the user to change channels, adjust volume, and access other functionalities without directly interacting with the television set.

Bell Canada

A major Canadian telecommunications and media company that provides a wide range of products and services including internet, television, and phone services.