Which of the following statements about risk management strategy is (are) correct?
I. It reduces the variability of a firm's expected cash flows.

II. It reduces the chance of catastrophic financial distress

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.


C

Business

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Which of the following terms refers to buying out a hostile shareholder at a price far above the current price of the target company's stock in exchange for the hostile shareholder's agreement not to buy more shares for a period of time?

A) golden parachute B) poison pill C) porcupine provision D) greenmail

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The Migrant & Seasonal Protection Worker Act (MSPA) provides all of these requirements EXCEPT:

a. a minimum wage and overtime b. disclosure of working terms and conditions at the time of hire c. safe and sanitary housing and transportation d. maintenance of wage and hour records

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What are the difficulties of following aduration-matched strategy for hedgingthe interest-rate risk of a defined benefitpension plan?

What will be an ideal response?

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