Question: 1.True or False A)Hedging is a zero-sum game B)Reducing risk always increases a company value C)Hedging can reduce the likelihood of financial distress D)Investors may

1.True or False

A)Hedging is a zero-sum game

B)Reducing risk always increases a 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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