Hedging Risk and Spreading Risk Are Two Ways To

question 98

Multiple Choice

Hedging risk and spreading risk are two ways to:

• A) increase expected returns from a portfolio.
• B) diversify a portfolio.
• C) lower transaction costs.
• D) match up perfectly positively correlated assets.

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Definitions:

Value Argument

A value argument refers to an argument in programming or function calls that passes the actual value of a variable, rather than its reference.

Update Query

A type of SQL query used to modify existing records in a database table.

Append Query

A database query that adds records from one or more sources to the end of a table.

Delete Query

A command or function in database management used to remove data or records from a table.