Which of the Following Describe Ways That a Business Manages

question 38

Multiple Choice

Which of the following describe ways that a business manages foreign exposure?
I.Hedge in the goods market
II.Hedge in the forward market
III.Rush payments of currencies expected to appreciate
IV.Rush collections of currencies expected to depreciate

• A) I only
• B) I and II
• C) II, III, and IV
• D) I, II, III, and IV

---

Definitions:

Required Rate

A rephrased definition for the Required Rate of Return; it is the least annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.

Expected Growth Rate

The anticipated increase in the value of an investment or index over a specific period of time.

Annual Dividend

The total dividend payment a company offers to its shareholders in a year.

Expected Return

The weighted average of all possible returns for an investment, considering the probabilities of each outcome.