
1. How can you use vertical integration and storage as parts of a risk management program? Provide an example. 2. When does risk retention make sense as a risk-management strategy? 3. What is the basis for the pecking order of financing projects? 4. Why are retailers particularly sensitive to fluctuations in their cashflows? Use this as the basis for a well-thought out hedging strategy for consumer retailing firms. 5. Why might it be desirable from a personnel point-of-view to reduce firm-specific cashflow volatility?
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