In order for a derivative to be considered a hedge, it must be mostly effective in offsetting a substantial amount of risk exposure associated with changes in fair values or cash flows of the hedged item
Indicate whether the statement is true or false
True
You might also like to view...
Our culture, status, and specific situation influence the meaning we attach to time
Indicate whether the statement is true or false
International investment portfolios can be beneficial because:
A. They provide working capital for local companies and financing for foreign government operations. B. They keep uninformed investors out of the market so only those "in the know" can make wise investment decisions. C. They concentrate risk so not all countries are likely to be affected by economic downturns. D. International financial transactions are more predictable.
What are the implications of an empty column (i.e., one with no check marks or x's) in the main body of the matrix of the house of quality?
A) Nothing, it's just a sparse row. B) There is no synergy among the product characteristics. C) Product characteristics are potentially superfluous. D) Customer requirements are potentially not being met by the product.
The basic shortcoming of the EBIT-EPS approach to capital structure is ________
A) that the optimal capital structure is difficult to compute B) its disregard for the presence of preferred stock in the capital structure C) its disregard for the firm's dividend policy D) that it concentrates on the maximization of EPS rather than the maximization of owner's wealth