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  3. Study Set
    International Financial Management Study Set 1
  4. Exam
    Exam 10: Measuring Exposure to Exchange Rate Fluctuations
  5. Question
    Because Creditors May Prefer That Firms Maintain Low Exposure to Exchange
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Because Creditors May Prefer That Firms Maintain Low Exposure to Exchange

Question 3

Question 3

True/False

Because creditors may prefer that firms maintain low exposure to exchange rate risk, exchange rate movements may cause earnings to be more volatile, and because investors may prefer corporations to perform hedging for them, exchange rate risk is probably relevant.

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