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) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

Operational information about companies may not always be widely available or simple to interpret for hedging purposes, and not all investors have the necessary capital or consistently implement hedging strategies.

Which of the Following Statements About Hedging of Business Risks