It is easier to hedge long-term financial risk than to hedge short-term financial risk.

Name: It is easier to hedge long-term financial risk than to hedge short-term financial risk.
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Question

Quizplus · Accepted Answer

Hedging long-term financial risk is generally more challenging because it involves greater uncertainty and fewer available instruments to effectively manage the risk over an extended period. Short-term risks can be more accurately predicted and managed with a wider range of financial products.

It Is Easier to Hedge Long-Term Financial Risk Than to Hedge