Solution-Role of corporate risk management

Role of corporate risk management

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Reference no: EM133062346

Consider a publicly traded company that runs gas stations. Its largest expense is the cost of gas. Should the company manage the risk of changing gas prices by

a. hedging the price of oil, or

b. diversifying its business and make it less dependent on gas, or

c. both, ord. neither?

Explain your answer carefully. List arguments that justify the role of corporate risk management and argue whether or not they are applicable to this case.

Reference no: EM133062346

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Role of corporate risk management

Reference no: EM133062346

Reference no: EM133062346

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