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Suppose that you are an executive of General Motors, and that a large share of your potential income is derived from year-end bonuses that depend

Suppose that you are an executive of General Motors, and that a large share of your potential income is derived from year-end bonuses that depend on GM's annual profits.

Would purchase of GM stock be an effective hedging strategy for the executive who is worried about the uncertainty surrounding her bonus?

Would purchase of Toyota stock be an effective hedge strategy?

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