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Which of the Following Statements About Hedging of Business Risks

Question 1

Multiple Choice

Which of the following statements about hedging of business risks by investors is/are correct?
I.Operational information about companies is widely available and investors find it relatively simple to hedge business risk.
II.Investors have the necessary capital required to implement hedging strategies and do so consistently.


A) Only statement I is correct
B) Only statement II is correct
C) Both statement I and II are correct
D) Neither statement I nor II is correct

Correct Answer:

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