Financial Options and Weighted Average Cost of Capital (WACC)
All options and stocks contain an element of risk. As such, just as quickly as they may create wealth for an investor, they may also result in huge losses. By using various investment vehicles such as certificate of deposits, mutual funds, and hedge funds as well as derivatives, an investor can minimize the risks of making losses.
Using Hedge Funds to Offset Risks
Market Neutral Strategy
Various types of hedge funds have the ability to minimize the risk exposure on an investor. In particular, the market-neutral strategy is effective in diversifying an investor’s portfolio, which minimizes his/her risk exposure. The market neutral strategy works………………………………
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