A failure to use financial instruments to cover existing exposures (i.e. active management) is a form of speculation.

Name: A failure to use financial instruments to cover existing exposures (i.e. active management) is a form of speculation.
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Question

Quizplus · Accepted Answer

Failure to hedge existing exposures implies that one is taking on risk with the hope of benefiting from favorable market movements, which is a form of speculation.

A Failure to Use Financial Instruments to Cover Existing Exposures