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When an investor invests in a certain company, he agrees to accept the risk that comes with that company. Therefore, companies should always come up
When an investor invests in a certain company, he agrees to accept the risk that comes with that company. Therefore, companies should always come up with a proper risk mitigation plan to minimise equity risk. During periods of uncertainty like the Covid-19 pandemic, volatile share prices and no payment of dividends reflect badly company and will drive investors away.
Required: Formulate a suitable strategy to manage the equity risk exposures in order to retain investors.
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