Question

Koller, Goedhart, and Wessels (2015) stated there are also risks that investors positively want companies to...

Koller, Goedhart, and Wessels (2015) stated there are also risks that investors positively want companies to take. For example, investors in gold-mining companies and oil-production companies buy those stocks to gain exposure to often-volatile gold or oil prices (2015). What are some other examples of companies that want to take risk just to get exposure like that of the oil and gold industries?

Homework Answers

Answer #1

Other example of companies who will be taking this just to get exposure-

A). Aviation company can also use oil related stocks to take such kind of exposure since aviation fuel is dependent upon oil prices.

B). Paint industries can also use oil related stocks to take such kind of exposure since oil is also an important component for their overall production.

C). Sugar cane producing companies can get exposure to sugar stocks.

D). Producers of ethanol can get exposure to sugar companies as well.

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