Acting to reduce a firm's exposure to a risk it already faces is called:
AHedging
BHeading
CHoarding
DHousing
Answer & Solution
Correct answer: A. Hedging
1. The exposure exists before any action is taken.
2. The action is meant to cut that exposure.
3. Such an action is hedging.
_Source: OpenStax Principles of Finance 2e, Chapter 20, Risk Management and the Financial Manager._
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