Which of the Following Is NOT an Acceptable Hedging Technique

question 6

Multiple Choice

Which of the following is NOT an acceptable hedging technique to reduce risk caused by a relatively predictable long-term foreign currency inflow of Japanese yen?

• A) Import raw materials from Japan denominated in yen to substitute for domestic suppliers.
• B) Pay suppliers from other countries in yen.
• C) Import raw materials from Japan denominated in dollars.
• D) Acquire debt denominated in yen.

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Definitions:

P Value

A statistical measure that helps scientists determine the significance of their research results.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.

Descriptive Statistics

Statistical procedures that organize and summarize research data.

Statistically Meaningful

Refers to results or data that are significant enough from a statistical standpoint to indicate a non-random pattern or effect.