An Increase in Political Risk Can Be Managed By

question 8

Multiple Choice

An increase in political risk can be managed by:

• A)adjusting a foreign investment project's NPV by either reducing its expected cash flows, or by increasing the cost of capital
• B)forming joint venture with a local company
• C)purchasing insurance against the hazard of political risk
• D)all of these

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Definitions:

Normal Population

A population distribution that follows a normal (bell-shaped) curve, indicating that the mean, median, and mode are equal.

Alternative Hypothesis

In statistical analysis, it suggests that there is a statistically significant relationship between variables, opposing the null hypothesis.

Sample Data

Data collected from a subset of a larger population, used to make inferences or predictions about the population as a whole.

SRS

Simple Random Sampling, a statistical method wherein each member of a population has an equal chance of being selected for the sample.