Question: What do we know about Corporate Hedging Practices? U a. Firms usually hedge tactical risks out not strategic risks C] b. Firms usually hedge strategic

What do we know about Corporate Hedging
What do we know about Corporate Hedging Practices? U a. Firms usually hedge tactical risks out not strategic risks C] b. Firms usually hedge strategic risks but not tactical risks U c. Firms hedge both the tactical as well as strategic risks Who is more likely to hedge a good firm (a rm with good prospects} or a bad firm (a firm with poor prospects)? U a. Good rms do not need to hedge C] b. Bad firms will hedge as it will help them perform better U c. Good firms will hedge to reduce confusion and maintain their optimal investment strategy U d. Bad firms will hedge to reduce confusion and maintain theiroptimal investment strategy

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