Economic variables are risk factors for proposed project

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Reference no: EM131606049

1. Explain how an analyst can determine what economic variables are important risk factors for a proposed project.

2. Identify and/or describe two methods a company can use to hedge or manage the risk associated with a specific economic variable (e.g., the price of a raw material used in the production process). One method must involve the use of a derivative contract: the other must not. (Be as specific as possible.)

Reference no: EM131606049

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