A
Act
Member
Hi,
In the notes it says that if the risks a company faces can be hedged through capital markets then economic capital would be projected over a shorter time horizon (eg 1 year), but if they can't be hedged the company may use a longer time period. Why is this?
Thanks
In the notes it says that if the risks a company faces can be hedged through capital markets then economic capital would be projected over a shorter time horizon (eg 1 year), but if they can't be hedged the company may use a longer time period. Why is this?
Thanks