If the Managers of a Firm Have a Greater Aversion

question 65

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:

Po Q6h

A medical instruction indicating that a medication should be taken orally every six hours.

Pounds

A unit of weight in the imperial system, equivalent to 0.4536 kilograms.

Kg

An acronym for kilogram, a unit of mass in the International System of Units (SI), equivalent to approximately 2.20462 pounds.

Pounds

A unit of weight used primarily in the United States, equivalent to 0.453592 kilograms.