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What does the term "hedging" mean in finance?...

What does the term "hedging" mean in finance?

A.

Maximizing profits in the stock market

B.

Investing in high-risk stocks

C.

Reducing risk by taking opposite positions in related markets

D.

Short selling shares

E.

Investing in real estate

Correct answer is C

Hedging involves taking opposite positions in related markets to reduce the risk of adverse price movements.