Which of the following is NOT a motivation for hedging?

Question

Quizplus · Accepted Answer

Hedging is primarily used to manage risk, not to offset the costs of insurance. It involves using financial instruments to reduce exposure to various risks (e.g., currency, interest rate, commodity price risks). The other options (A, B, D) are indeed motivations for hedging, as they relate to reducing financial distress, improving managerial performance evaluation, and managing tax liabilities.

Which of the Following Is NOT a Motivation for Hedging