Question: 6. (20 points) True or False: Label each statement as True or False. IF FALSE, briefly explain why. 1. Hedging is the action of taking

 6. (20 points) True or False: Label each statement as True

6. (20 points) True or False: Label each statement as True or False. IF FALSE, briefly explain why. 1. Hedging is the action of taking a position that loses value when prices move in the hedger's desired direction. 2. Because equity is risky, its required return will always be higher than the return produced by the assets

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