How much cash flow risk should a company take on

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Reference no: EM131276074

1. How do diversifiable and nondiversifiable risks affect a company's cost of capital?

2. On what basis should a company's managers decide which risks to hold and which to hedge?

3. How much cash flow risk should a company take on? How should it manage risks with extreme outcomes that could potentially bankrupt the company but are very unlikely to occur?

Reference no: EM131276074

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