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Business Studies

Investment Decision

The strategy ...

Question

The strategy used to minimize the risk and maximize the return on an investment is called ____________.

A

hedge

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B

index

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C

bid

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D

offer

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Solution

The correct option is B hedge
A hedge is an investment to reduce the risk of adverse price movements. A hedge is the strategy used to minimize the risk and maximize the return on an investment. It consists of taking an offsetting position in a related security.

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