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ARTÍCULO
TITULO

Creating Value through Systematic Risk Management

Jaime Andrés Vargas Vives    
Juan Sergio Cruz Merchán    

Resumen

application, management and value. The study shows how risk management models can create value by reducing the discount rate of valuation flows of the underlying asset Three models of real derivatives are put forward: sales derivatives, cost derivatives, and EBIT derivatives. These real derivatives focus on maximizing asset value through systematic risk (beta) reduction strategies. In summary, the  results  of  this  study  contradict  one  of  the  central  principles  of  modern  management, put forward by C. W. Smith in his well-known article, ?Corporate risk management?.

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