If the Managers of a Firm Have a Greater Aversion

question 77

Multiple Choice

If the managers of a firm have a greater aversion to risk,then

• A) they are less likely to hedge.
• B) they are more likely to hedge.
• C) they are more likely to use derivatives to speculate.
• D) none of the above.

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Definitions:

Numeric Ages

Ages or dates assigned to geological events or rock formations expressed in years, often determined through radiometric dating.

Magnetic Reversals

Occurrences where the Earth's magnetic field switches direction, swapping the magnetic north and south poles.

Numeric Ages

Refers to the actual number of years that have passed since a particular geological event or the formation of a rock.

Landslide

The sudden and rapid movement of a large amount of earth material, such as rock and soil, downslope due to gravity.