One Argument Why Exchange Rate Risk Is Irrelevant to Corporations

question 51

True/False

One argument why exchange rate risk is irrelevant to corporations is that shareholders may be able to hedge this risk individually.

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Definitions:

Mark-up

A surplus included in the goods' purchase price to compensate for overhead costs and gain, determining the final sales price.

Cost

The cost involved in buying an item or the financial outlay needed to produce a good or service.

Mark-up

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost.

Markdown

A reduction from the original or listed price of a good or service, often used to stimulate sales or clear out inventory.