exposure has many different names. Various financial managers have called it economic exposure, competitive exposure, or strategic exposure. Transaction Accounting o Operating Translation Which of the following statements about hedging is incorrect? O Hedging protects the owner of the asset from loss O Hedging increases the mean of its cash flows. O Management's motivation to reduce variability is sometimes driven by accounting reasons. Hedging reduces the risk of future cash flows, and therefore it improves the planning capability of the firm