What is the basic rationale for hedging

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Reference no: EM131506522

What is the basic rationale for hedging?

multiple choice are:

to reduce a firm's sensitivity to changes in prices, exchange rates, or interest rates

to increase a firm's profit

to reduce a firm's exposure to a risk

derivatives can be used to hedge

A and B

A and C

A and D

B and C

B and D

C and D

all but A

all but B

all but C

all but D

all are true

Reference no: EM131506522

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