​If a US Firm Needs Dollars but Borrows a Foreign Currency Portfolio

question 40

Multiple Choice

​If a U.S. firm needs dollars but borrows a foreign currency portfolio, the uncertainty of the portfolio's effective financing rate will be highest if the correlations between currencies in the portfolio are ____ and the individual volatility of each currency is ____.

• A) ​high; low
• B) ​high; high
• C) ​low; low
• D) ​low; high

---

Definitions:

Legend

A key or guide that explains the symbols, colors, or patterns used in a chart, map, or diagram.

X Y Scatter Chart

A type of chart that displays values for two variables for a set of data, using points to represent the data's intersection on an x (horizontal) and y (vertical) axis.

Enter Chart Data

The process of inputting or updating the values and labels used to generate a chart or graph in spreadsheet and presentation software.

Chart Style

A pre-defined combination of chart elements, such as color, font, and layout, used to enhance the visual appeal and readability of data charts.