What is hedging and how is it different from diversification? If a firm needs to manage its risk, will you recommend diversification or hedging? Why?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter21: Risk Management
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What is hedging and how is it different from diversification?

If a firm needs to manage its risk, will you recommend diversification or hedging?

Why?

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