What is a hedge?
A) A means by which to reduce a risk
B) An equal and opposite risk
C) A riskless transaction
D) A means of cancelling a deal

Name: What is a hedge? A) A means by which to reduce a risk B) An equal and opposite risk C) A riskless transaction D) A means of cancelling a deal
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Question

Quizplus · Accepted Answer

A hedge is a means by which to reduce a risk, typically by taking an offsetting position in a related security or asset. It is often used in investments to mitigate potential losses.

What Is a Hedge