This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following statements about hedging is (are) true? I. Hedging is a form of risk ... (Read 352 times)

magmichele12

  • Hero Member
  • *****
  • Posts: 559
on: Jul 11, 2018
Which of the following statements about hedging is (are) true? I. Hedging is a form of risk transfer. II. Hedging is used to address the risk of unfavorable price fluctuations.
 
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II

Question 2

ABC Insurance Company plans to sell homeowners insurance in five Western states. ABC expects that 8 homeowners out of every 100, on average, will report claims each year.
 
  The variation between the rate of loss that ABC expects to occur and the rate of loss that actually occurs is called
  A) objective probability.
  B) subjective probability.
  C) objective risk.
  D) subjective risk.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jessofishing

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: C

Answer to Question 2

Answer: C


magmichele12

  • Member
  • Posts: 559
Reply 2 on: Jul 11, 2018
Thanks for the timely response, appreciate it

patma1981

  • Member
  • Posts: 292
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Fibroid tumors, or leiomyomas. Fibroids develop from the uterus to form a variety of hard, round ben Fibroid tumors, or leiomyomas. Fibroids develop from the uterus to form a variety of hard, round ben
Nursing care plan - risk for infection Nursing care plan - risk for infection
Responses to Viewing Form from Motion Responses to Viewing Form from Motion
Monopoly, patented in 1935, was an instant best-seller: Players risk all their assets in an attempt Monopoly, patented in 1935, was an instant best-seller: Players risk all their assets in an attempt
Urban Form Urban Form
Where and how sperm form. Where and how sperm form.
Video: Bone elongation - processes at the epiphyseal plate

For a complete list of videos, visit our video library