Homework Help

"The modern approach is an improvement over the traditional approach of financial...

user profile pic

sjamil912 | (Level 1) Honors

Posted May 18, 2013 at 4:44 PM via web

dislike 1 like

"The modern approach is an improvement over the traditional approach of financial management." Do you agree?

1 Answer | Add Yours

user profile pic

Kay Morse | College Teacher | (Level 1) Senior Educator

Posted May 19, 2013 at 10:28 PM (Answer #1)

dislike 1 like

The modern concept of financial management as laid out by Stephen Ross is a very complex one that includes practices like difficult arbitrage trades where a given asset is sold and purchases at the same time to take advantage of price differences and reduce risk and options trading and hedging (risk trade-offs). It is suitable for advanced business persons and large corporations but may be a risk-trap for smaller, less knowledgeable businesses.

Sources:

Join to answer this question

Join a community of thousands of dedicated teachers and students.

Join eNotes