The Term Hedge Refers to an Investment That Is Used

question 44

Multiple Choice

The term hedge refers to an investment that is used ________.

• A) primarily for tax-loss selling purposes
• B) to mitigate specific financial risks
• C) to conceal one's true investment strategy from other market participants
• D) primarily to defer capital losses

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Definitions:

Suppress

To hold back or stop something from being expressed, revealed, or acted on.

Framed

Refers to the perspective or context in which information, concepts, or visuals are presented to an audience.

Low Fat

Describes foods or diets that contain a reduced amount of fat, especially saturated fats and trans fats, to promote health and reduce the risk of diseases.

Yogurt

A dairy product produced by bacterial fermentation of milk, known for its creamy texture and health benefits.