Which of the Following Is True

question 2

Multiple Choice

Which of the following is true?

• A) Hedging can always be done more easily by a company's shareholders than by the company itself
• B) If all companies in an industry hedge, a company in the industry can sometimes reduce its risk by choosing not to hedge
• C) If all companies in an industry do not hedge, a company in the industry can reduce its risk by hedging
• D) If all companies in an industry do not hedge, a company is liable increase its risk by hedging

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Definitions:

Fourth of July

An American federal holiday commemorating the adoption of the Declaration of Independence on July 4, 1776, marking the country's independence from Great Britain.

Uncle Tom's Cabin

A novel by Harriet Beecher Stowe that was published in 1852, highlighting the harsh realities of slavery in America and contributing significantly to anti-slavery sentiments.

Slaves

Individuals forced into servitude without personal freedoms or rights.

Slave Owners

Individuals or entities that owned, bought, and sold enslaved people as property, primarily in historical contexts such as pre-Civil War America.