The Most Common Strategies for Hedging Risk by Making Real

question 18

Multiple Choice

The most common strategies for hedging risk by making real investments in assets with offsetting risk are

• A) horizontal integration and storage.
• B) vertical integration and storage.
• C) vertical integration and diversification.
• D) horizontal integration and diversification.

---

Definitions:

Sociometer Model

The idea that a basic function of self-esteem is to indicate to the individual how much he or she is accepted by other people.

Individualist Cultures

Societies that prioritize the needs and goals of the individual over the group.

Collectivist Cultures

Societies that prioritize group goals over individual ones and emphasize strong social ties and interdependence.

Ostracism

The exclusion of an individual or group from wider society, often used as a form of social punishment or correction.