Which of the Following Is NOT a Valid Reason for Discounting

question 71

Multiple Choice

Which of the following is NOT a valid reason for discounting the importance of stable foreign currency in evaluating international investment alternatives?

• A)A devaluation in one country is usually offset by an increase in value in another
• B)The overall effect of a devaluation in the economy of the country is insignificant
• C)Risk exposure can be hedged through foreign exchange contracts or foreign currency options
• D)All of the above are valid reasons

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