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.
test
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.
The answer is C) Minimize the skewness of the loss distribution.