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.
For more information on hedging kindly check brainly.com/question/22282124
An example of a trade-off that an investor faces is risk.
<h3>What is a
trade-off?</h3>
This refers to a situation where a choice means losing another option or forgoing a benefit or opportunity for another
The typical investor's trade-off includes risk, return and liquidity on an investment.
Therefore, a typical example of a trade-off that an investor faces is risk on a investment.
Read more about trade-off
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<span>CorrectThe direction of the electric field stays the same regardless of the sign of the charges that are free to move in theconductor.Mathematically, you can see that this must be true since the expression you derived for the electric field isindependent of .Physically, this is because the force due to the magnetic field changes sign as well and causes positive charges tomove in the direction (as opposed to pushing negative charges in the direction). Therefore the result isalways the same: positive charges on the side and negative charges on the side. Because the electric fieldgoes from positive to negative charges will always point in the direction (given the original directions of</span>
