Hedging risk for a long position is accomplished by
A)taking another long position.
B)taking a short position.
C)taking additional long and short positions in equal amounts.
D)taking a neutral position.

Question

Quizplus · Accepted Answer

Hedging risk for a long position is accomplished by taking a short position. This means that the investor will bet against a security by profiting from any potential decrease in value of that security. By taking a short position, the investor can offset some of the potential losses in their long position, reducing overall risk.

Hedging Risk for a Long Position Is Accomplished by