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    Exam 25: International Diversification
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    Exchange Rate Risk
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Exchange Rate Risk

Question 34

Question 34

Multiple Choice

Exchange rate risk


A) results from changes in the exchange rates between the currency of the investor and the country in which the investment is made.
B) can be hedged by using a forward or futures contract in foreign exchange.
C) cannot be eliminated.
D) A and C.
E) A and B.

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