Patricia owns significant shares in an airline. There has been much speculation in the news that the price of oil may go up, negatively impacting the airline's profits. Patricia is contemplating buying stock in an oil and gas company as a way to cover her investment. This risk management strategy is commonly known as a. Self-insurance b. Hedging c. Loss Prevention d. Avoidance

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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5. Patricia owns significant shares in an airline. There has been much speculation in
the news that the price of oil may go up, negatively impacting the airline's profits.
Patricia is contemplating buying stock in an oil and gas company as a way to
cover her investment. This risk management strategy is commonly known as
a. Self-insurance
b. Hedging
c. Loss Prevention
d. Avoidance
Transcribed Image Text:5. Patricia owns significant shares in an airline. There has been much speculation in the news that the price of oil may go up, negatively impacting the airline's profits. Patricia is contemplating buying stock in an oil and gas company as a way to cover her investment. This risk management strategy is commonly known as a. Self-insurance b. Hedging c. Loss Prevention d. Avoidance
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