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Which of the following is an incorrect statement regarding a company's use of hedging? O Hedging is used by companies primarily to manage interest rate

Which of the following is an incorrect statement regarding a company's use of hedging? O Hedging is used by companies primarily to manage interest rate risk. O Derivatives are used to implement a hedge transaction. An effective hedge occurs when the change in value of a derivative offsets the change in value of the hedged item. It is used as a mechanism to reduce earnings volatility

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