Bundle: Intermediate Financial Management, 13th + MindTap Finance, 1 term (6 months) Printed Access Card
Bundle: Intermediate Financial Management, 13th + MindTap Finance, 1 term (6 months) Printed Access Card
13th Edition
ISBN: 9781337817332
Author: Brigham, Eugene F., Daves, Phillip R.
Publisher: Cengage Learning
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Chapter 13, Problem 11Q
Summary Introduction

To discuss: Reasons considered by companies to focus more on stand-alone risk than on market risk.

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In theory, market risk should be the only “relevant” risk. However, companies focus asmuch on stand-alone risk as on market risk. What are the reasons for the focus on standalonerisk?
what happens if a company doesn't manage risk ?
What are some actions that companies can take tominimize or reduce risk exposures?
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