Quantity Risk Is

question 45

Multiple Choice

Quantity risk is

• A)the difficulty in measuring the volatility
• B)the uncertainty about the size of the spot position
• C)the risk of mismatching the futures maturity to the spot maturity
• D)the possibility of regression error
• E)none of the above

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Definitions:

Operating Activities

Day-to-day actions that are involved in running a business, such as sales, purchasing, and paying expenses, that affect the company's cash flow.

Financing Activities

Transactions involving raising capital and repaying investors, including issuing equity, borrowing funds, and repaying debt, as part of the company's cash flow activities.

Dividends Paid

The portion of a company's earnings distributed to shareholders.

Comparative Balance Sheet

A financial statement that presents the balances of assets, liabilities, and equity at two or more points in time, allowing for comparison and analysis.