Effective tool for mitigating exposure to a variety of risks

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Hedging is an effective tool for mitigating exposure to a variety of risks. Generally speaking, corporations like to keep risk to a minimum, so I would assume that any corporation with exposure to foreign exchange risk would be utilizing hedges to reduce risk. However, there are a lot of firms that do not hedge their exposure. Why do you think this is? Do you think hedging is a good idea or not?

Reference no: EM13999048

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