@article{Sarassoro:172797, recid = {172797}, author = {Sarassoro, Gboroton F. and Leuthold, Raymond M.}, title = {Managing multiple international risks simultaneously with an optimal hedging model}, journal = {Agricultural Economics: The Journal of the International Association of Agricultural Economists}, address = {1991-10}, number = {968-2016-75134}, pages = {18}, year = {1991}, abstract = {A risk management model based on portfolio theory which accounts jointly for price, quantity, interest rate and exchange rate risks is developed and applied to cocoa and coffee production and exports in the Ivory Coast. Utilizing commodity and financial futures markets jointly, the results show that a government export agency can reduce risks from 27% to 89% by following a multicommodity hedging program which manages several risks simultaneously. The model and technique developed are applicable to many multiproduct firm and international risk management situations.}, url = {http://ageconsearch.umn.edu/record/172797}, doi = {https://doi.org/10.22004/ag.econ.172797}, }