IFM FInal Flashcards

1
Q

How do Investors deal with Exchange Rate Risk?

A

ERR is irrelevant for Investor’s because they can hedge ERR on their own

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How can MNC reduce ERR?

A

Diversify Portfolio
Invest in other currency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly