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The downside of micro hedging is that companies that manage their risk exposure by hedging each balance sheet position will find a.) hedging becomes very
The downside of micro hedging is that companies that manage their risk exposure by hedging each balance sheet position will find
a.) hedging becomes very costly
b.) a series of micro-hedges ignore the company's internal hedges that are already on the balance sheet
c.) interest rate risk is static over time
d.) SWAPS cannot hedge interest rate risk and credit risk at the same time.
e.) both A and B
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