1. (4 pts)You own shares in two firms, Wheat Products Ltd (WPL) and Flashy Games Ltd (FGL). WPL is a chain of farms producing wheat that is sold to millers. FGL is a computer software company making computer games for the fast-growing computer games market.

You have conducted some research and found that, on average, YED for wheat products is - 2.0 and for computer games is + 4.0. You have received an economic forecast that tells you that national income will grow by 3% next year.

1. What strategies could your two firms adopt to reduce the risks associated with changes in national income?