Managing Operating Exposure

question 61

Multiple Choice

Managing operating exposure

• A)is a short-term tactical issue.
• B)is a long-term issue, like selecting a site for a factory.
• C)is relatively unimportant, since most MNCs have a built-in hedge.
• D)none of the above

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Definitions:

Expected Return

The anticipated amount of profit or loss an investment generates over a given period of time.

Standard Deviation

A statistical measure of the dispersion or variability in a set of data, often used in finance to quantify the risk associated with a security or investment portfolio.

Coefficient Of Variation

A standardized measure of the dispersion of a probability distribution or frequency distribution, used to assess risk relative to expected returns.

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating its risk relative to the market average.