True or false? a. Hedging is a zero-sum game. b. Reducing risk always increases company value. c.

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True or false?
a. Hedging is a zero-sum game.
b. Reducing risk always increases company value.
c. Hedging can reduce the likelihood of financial distress.
d. Investors may prefer to hedge themselves.
e. Risk may be reduced by real options.
f. Derivatives include futures, forwards, preferred stock, and swaps.
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Fundamentals of Corporate Finance

ISBN: 978-1259722615

9th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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