Select all of the following that are true regarding hedging: A. Hedging is risk mitigation through diversification. B. Hedging is the same as arbitirage since it acts in across markets C. Hedging increases the returns of an investment D. Buying an risky investment is an example of hedging

Select all of the following that are true regarding hedging: A. Hedging is risk mitigation through diversification. B. Hedging is the same as arbitirage since it acts in across markets C. Hedging increases the returns of an investment D. Buying an risky investment is an example of hedging

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Interest, Rent, And Profit

Section16.4: The Entrepreneur

Problem 1ST

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Question

Select all of the following that are true regarding hedging:

A. Hedging is risk mitigation through diversification.

B. Hedging is the same as arbitirage since it acts in across markets

C. Hedging increases the returns of an investment

D. Buying an risky investment is an example of hedging

Detailedly Explanation Please, Thank you!

Formula Formula ROI (%) = Net Income Principal Amount × 100

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