Hedging Reduces the Amount of ________ in Earnings Data That

question 8

Multiple Choice

Hedging reduces the amount of ________ in earnings data that is not due to actions of the managers.

• A) information
• B) certainty
• C) "noise"
• D) investor interest

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Definitions:

Legislative Rules

Regulations established by legislative bodies to guide the implementation and enforcement of laws.

Federal Administrative Agency

A body established by Congress that implements and enforces laws and regulations within a specific jurisdiction or area of federal responsibilities.

Interstate Commerce Commission

A regulatory agency in the United States created by the Interstate Commerce Act of 1887, originally tasked with regulating the railroads to ensure fair rates and to regulate other modes of transport.

Rule Making

The process by which government agencies formalize and enact regulations or standards that govern behavior within specific industries or areas.