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Which of the following statements about hedging is correct? -Hedging protects the owner of the asset from loss -Hedging reduces the risk of future cash

Which of the following statements about hedging is correct?

-Hedging protects the owner of the asset from loss

-Hedging reduces the risk of future cash flows, and therefore it improves the planning capability of the firm

-Hedging does not change the variability of expected cash flows

-Hedging produces a gain in the value of the asset hedged

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