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:

Sickle-cell Gene

A genetic variant that affects the shape of red blood cells, causing them to assume a sickle shape, which can lead to various health complications.

Malaria

A mosquito-borne infectious disease affecting humans and other animals caused by Plasmodium parasites, characterized by fever, vomiting, and other flu-like symptoms.

Dairying

The practice of keeping and breeding dairy cattle for milk production.

Cows' Milk

The milk produced by dairy cows, commonly consumed by humans and used in a variety of dairy products.