Which of These Statements Is Not True

question 95

Multiple Choice

Which of these statements is not true?

• A) Transactions to reduce risk are unlikely to add value if investors can easily undertake similar transactions.
• B) Hedging may reduce the costs of financial distress.
• C) Transactions to reduce risk always add value.
• D) Hedging is a zero-sum game.

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Definitions:

Biochemist

A scientist specializing in the chemical processes and substances that occur within living organisms.

Attitude Change

Any significant modification of an individual’s attitude. In the persuasion process, this involves the communicator, the communication, the medium used, and the characteristics of the audience. Attitude change can also occur by inducing someone to perform an act that runs counter to an existing attitude.

Persuasion

The process of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors through communication.

Yale

An American private Ivy League research university located in New Haven, Connecticut, known for its excellent educational programs.