One of the Drawbacks of Using Futures Contracts to Hedge

question 25

Multiple Choice

One of the drawbacks of using futures contracts to hedge is that managers in a firm may use the futures contracts to ________ and consequently increase the firm's risk rather than reducing it.

• A)hedge
• B)produce
• C)speculate
• D)increase managerial compensation
• E)expand

Comprehend the trigonometric ratios and their application in solving problems involving right triangles.

Apply trigonometry to find angles and side lengths in right triangles.

Utilize vector addition methods to solve problems involving the sum of vectors.

Recognize the significance of angles in geometry, especially right angles.

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Definitions:

Adolescents

The transitional stage from childhood to adulthood, typically involving individuals aged between 13 and 19 years.

Elaborative Strategy

A method for increasing retention of new information by relating it to well-known information.

Rote Rehearsal

A memorization technique that involves repeating information over and over again to embed it in memory.

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimulus has ceased.