What Is Hedging? A. It Is a Method of Leveraging Returns When a Returns

question 60

True/False

What is hedging?
A. It is a method of leveraging returns when a company has foreign currency receivables or payables or has outstanding commitments that will be affected by changes in market prices.
B. It is a system for investing in financial instruments such that the entity is guaranteed increased returns and lower risks.
C. It is any activity, entered into by the entity, designed to increase returns and reduce risk.
D. It is an action taken with the object of avoiding or minimising possible adverse effects of movements in things such as exchange rates or market prices.
E. None of the given answers.

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Definitions:

Clauses Separation

The practice of distinctly dividing sections of a sentence, contract, or legal document with punctuation or formatting to enhance readability and understanding.

Direct Approach

A method of communication where the main point or message is presented straight away at the beginning.

Attributing Blame

The act of assigning responsibility for a mistake, fault, or wrong to a person or entity.

You Attitude

A communication approach that focuses on the reader or listener, emphasizing their interests and feelings, often used to enhance the effectiveness of business communication.