True or false? a. Hedging is a zero-sum game. b. Reducing risk always increases company value. c.
Question:
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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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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