Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 30.2, Problem 1CC
Summary Introduction

To discuss the risk management strategies that firms use to hedge commodity price risk.

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Discuss three strategies used in managing commodity price risk.
Describe how commodity futures markets can beused to reduce input price risk.
Using examples, explain how firms are affected by both systematic and firm-specific risk. What is the risk premium?
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