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:

Total Sample Size

The aggregate number of observations or data points collected in a study.

F Value

A ratio used in ANOVA to determine whether the group means are from populations with the same mean; a higher F value indicates a more significant difference.

Between-groups Df

It refers to the degrees of freedom associated with the variance between different groups in statistical analysis.

F Value

A statistic used in ANOVA to determine the ratio of variance between groups to variance within groups, important for assessing group differences.