Hedging is the process in which derivatives are used to reduce risk exposure.
<h3>What is hedging?</h3>
Hedging is a strategy that is used to limit risks attached to financial assets.
It is management strategy requires buying or selling an investment to potentially reduce the risk of adverse changes in price.
Therefore, the process in which derivatives are used to reduce risk exposure is hedging.
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It is not a question that can be addressed empirically. The
word "empirical" specify information expanded by means of remark,
knowledge, or experimentations. Empirical questions are not responded
by remark. They are responded by the clarification of observations.
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Meriwether Lewis and William Clark helped open the American frontier to settlement by exploring the regions further out west. They mapped these territories and found accessible routes, so that Americans could move further out west and settle the land before the Europeans could claim it. There was also a smaller objective of studying the science and possible economic qualities.
