Hedging Consists of Reducing the Risk Involved in Owning an Asset

question 33

True/False

Hedging consists of reducing the risk involved in owning an asset or commodity by making an offsetting sale of that asset.

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Definitions:

Unprofitability

The condition of a business or an investment generating more expenses than revenue, resulting in a financial loss.

Nickel-and-dimed

A phrase describing a situation where small amounts of money are frequently charged, leading to a substantial total expense over time.

Entrance Fees

Charges that must be paid as a condition of gaining entry to a service, facility, event, or market.

Amusement Parks

These are entertainment venues that feature rides, games, and other attractions for fun and amusement.