edging is a technique used in market risk management to:  A. Increase potential profits  B. Eliminate all types of risk  C. Offset potential losses in one investment by gains in another  D. Speculate on market movements

Hedging strategy; Removes losses Helps reduce risk Helps make excess profits Is independent of risk

What is hedging in the context of investing?(1.0 Marks)Investing Without Any StrategyAManaging Risks By Offsetting Potential LossesBSpeculating On Future PricesCIgnoring Market Fluctuations

By hedging a portfolio ; an investora.Reduces interest rate riskb.Increases re investment riskc.Increases exchange rate riskd.None of these

Semi-active management is focused on: O a. Taking small, calculated bets to outperform a targeted index on a net of fees basis • b. Using fundamental analysis to identify stocks likely to outperform O c. Tax-efficient outcomes • d. Maximising portfolio liquidity O e. Protecting capital in risk-off environments

1 pointWhich of the following is a key advantage of using value at risk (VaR) as a market risk management tool for a trading portfolio