Question: 2. In financial risk management, hedging is commonly defined as which of the following? a. assuming risk in order to profit from a change in

2. In financial risk management, hedging is commonly defined as which of the following? a. assuming risk in order to profit from a change in a future rate or price. b. using financial instruments to reduce risk associated with uncertain future cash flows. c. speculating in financial markets d. calculating collected balances to a date different from the date the transaction occurred. e. lending based on the pledging of accounts receivable and inventory as collateral
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