Which One of the Following Statements Regarding Hedging Is True

question 50

Multiple Choice

Which one of the following statements regarding hedging is true?

• A) Hedging is adding securities to an existing portfolio to increase the overall return.
• B) Hedging is a strategy used by investors to increase both the risk and return of a portfolio.
• C) Hedging is a strategy used by investors to reduce the risk of a portfolio.
• D) Hedging is a strategy used to increase portfolio volatility.
• E) None of these is true.

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Usability

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Home Page

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