Why in perfect markets, the benefits achieved from risk management activity would at least equal the costs of undertaking such activity?
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Risk management
8y ago#1As it stands, I do not believe the statement to be true, because it depends on how well of badly the risk is being managed.
However, insofar as traded instruments are being used to manage risk (e.g. using futures), then in a perfect market the price of them will exactly reflect the benefits to be made.
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