Investment Banking, Hedging, and Risk Management

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Investment Banking, Hedging, and Risk Management

General Questions:

Respond to the following questions thoroughly, in 150-300 words for each question. Use your textbook as your first and major reference.

  1. What is the function of an investment bank?  How does it differ from a commercial bank? How is an investment bank regulated?
  2. Describe the practice of hedging. How might a financial institution hedge against the future changes in market conditions?  What is the difference between a long and a short position and how do these positions deal with risk?

Criteria:

1.  Must have in-text citations and complete reference

2.  Must be in APA format

3.  Must be plagiarism free