When a Firm Holds Assets in Many Countries

question 69

Multiple Choice

When a firm holds assets in many countries,

• A)the firm's cash flows are internationally hedged.
• B)thus, shareholders of the firm can indirectly benefit from international diversification even if they are not directly holding foreign shares.
• C)thus, shareholders of the firm can directly benefit from international diversification even if they are not directly holding foreign shares.
• D)none of the above

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Definitions:

Inherent Vulnerable

A state of being naturally exposed or susceptible to being harmed or adversely affected due to intrinsic characteristics or conditions.

Lowered Epinephrine

Refers to a decreased level of epinephrine, a hormone and neurotransmitter involved in the body's fight-or-flight response.

Stress

A psychological and physical reaction to demands, perceived as challenges or threats, which can affect health and wellbeing.

Cytokine Release

The process by which immune cells secrete cytokines, proteins that modulate the immune and inflammatory responses.