Which of the Following Is Not Generally Considered a Benefit

question 20

Multiple Choice

Which of the following is not generally considered a benefit of hedging?

• A) It reduces one or more aspects of business risk.
• B) It allows prices to be locked in advance.
• C) The costs of hedging are paid by the speculators.
• D) It can stabilize profits.

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Definitions:

Personality

Personality encompasses the characteristic patterns of thoughts, feelings, and behaviors that make a person unique, influencing how they interact with the world and manage emotions.

Choleric

One of the four traditional temperaments, characterized by a quick, hot temper and a strong, energetic personality.

Hostile

Displaying or characterized by antagonism or aggression towards others.

Heart Attack

A medical condition caused by the blockage of blood flow to the heart muscle, resulting in damage or death of heart tissue.