问题如下：
A benefit of risk budgeting is that it:
选项：
A. considers risk tradeoffs.
B. establishes a firm’s risk tolerance.
C. reduces uncertainty facing the firm.
解释：
A is correct.
The process of risk budgeting forces the firm to consider risk tradeoffs. As a result, the firm should choose to invest where the return per unit of risk is the highest.
可以tradeoff能理解成不反对hedging吗？
