It is difficult to construct a perfectly hedged financial plan because

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All of the options listed are factors that make it difficult to create a perfectly hedged financial plan. Determining which part of assets is temporary and which part is permanent can be difficult, and the exact timing of asset liquidation is often uncertain. In addition, the availability of short and long-term financing can vary over time, making it difficult to rely on a particular source of funding for an extended period. Taken together, these factors make it challenging to construct a financial plan that perfectly hedges against all risks and uncertainties.

It Is Difficult to Construct a Perfectly Hedged Financial Plan