An Investor Practicing Hedging Would Be Most Likely To

question 51

Multiple Choice

An investor practicing hedging would be most likely to:

• A) avoid the stock market and focus on bonds.
• B) purchase shares in general motors and buy U.S. treasury bonds.
• C) purchase shares in general motors and Amoco oil.
• D) put his/her invested funds in CDs.

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Definitions:

Ratio Scale

A scale of measurement where there is a true zero and equal intervals, allowing for the comparison of magnitudes and the performance of mathematical operations.

Statistical Inference

The process of drawing conclusions about a population’s parameters based on a sample taken from the population.

Descriptive Statistics

Statistical techniques used to summarize, show, and describe the basic features of data sets, providing simple summaries about the sample and measures.

Ratio Scale

A scale where there is a true zero point, allowing for the measurement of ratios between data points.