A strength of real options is that they reduce risk by permitting deferral of a final commitment of funds until long-term projects have reduced their uncertainty.

Name: A strength of real options is that they reduce risk by permitting deferral of a final commitment of funds until long-term projects have reduced their uncertainty.
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Question

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Real options allow for flexibility and the ability to wait until uncertainty is reduced before making a final commitment, which can help reduce risk.

A Strength of Real Options Is That They Reduce Risk