To hedge is to:
A) Minimize the mean of the loss distribution.
B) Minimize the standard deviation of the loss distribution.
C) Minimize the skewness of the loss distribution.
D) Minimize the kurtosis of the loss distribution.
Reveal the Answer
The answer is C) Minimize the skewness of the loss distribution.
Advanced Credit Risk Professional Certificate
A comprehensive survey of credit risk modeling, valuation and credit risk management techniques. Develop models for assessing the value and risk of portfolio credit default swaps, tranche credit index products and various types of collateralized debt obligations.
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