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Regulated Companies Are Found to Hedge More Than Unregulated Ones

Question 46

Multiple Choice

Regulated companies are found to hedge more than unregulated ones because:


A) regulated companies face more risk.
B) hedging can increase debt capacity.
C) unregulated companies face more risk.
D) unregulated companies are prohibited from hedging.
E) law limits the level of risk taking.

Correct Answer:

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