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Oct 31, 2022

The answer is hidden in your question. The company hedges to mitigate risk, to guard against excessive downturns in profit. It “pays” for this risk protection by potentially foregoing some profit. There is of course a risk-return tradeoff.

Oct 20, 2022

The question is interesting, provocative, and borderline polemical. Economics is not pure science. In physical science, lab experiments have repeatability and reproducibility.



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