Discuss some of techniques available to reduce risk exposure

Reference no: EM13304273

Give two reasons stockholders might be indifferent between owning the stock of a firm with volatile cash flows and that of a firm with stable cash flows.

List six reasons risk management might increase the value of a firm.
Why do options typically sell at prices higher than their exercise values?
Discuss some of the techniques available to reduce risk exposures.

Reference no: EM13304273

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