Hedging Risk and Spreading Risk Are Two Ways To

question 55

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

---

Definitions:

Population

The entire group of individuals or objects that is the subject of a statistical analysis.

Variables

Elements, features, or factors that are likely to change or vary in an experiment or dataset.

Scientific Method

A systematic, organized series of steps that helps ensure objectivity and consistency in exploring a social or scientific problem.

Research Process

The systematic steps followed to collect and analyze information to increase our understanding of a topic or issue.