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

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Karyth Cara eNotes educator| Certified Educator

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.