Sometimes Spreading Has an Advantage Over Hedging to Lower Risk

question 84

Multiple Choice

Sometimes spreading has an advantage over hedging to lower risk because:

• A)It can be difficult to find assets that move predictably in opposite directions
• B)It is cheaper to spread than hedge
• C)Spreading increases expected returns, hedging does not
• D)Spreading does not affect expected returns

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Definitions:

Obstetrician

A medical doctor specializing in the care of women during pregnancy, childbirth, and the postpartum period.

Prenatal Counseling

The provision of medical advice and support to pregnant women before delivery, covering a range of health, nutritional, and lifestyle topics.

Pregnancy

The period during which a fetus develops inside a woman's uterus, usually lasting around 40 weeks from the last menstrual period to childbirth.

Health Care Provider

A professional who offers preventive, curative, promotional, or rehabilitative health care services in a systematic way to individuals, families, or communities.