Which of the following is NOT a valid reason for discounting the importance of stable foreign currency in evaluation international investment alternatives?

Question

Quizplus · Accepted Answer

Discounting the importance of stable foreign currency in evaluation international investment alternatives would be erroneous if one assumes that a devaluation in one country is usually offset by an increase in value in another (A) or risk exposure can be hedged through foreign exchange contracts or foreign currency options (C). However, claiming that the overall effect of a devaluation in the economy of the country is insignificant (B) would not be a valid reason.

Which of the Following Is NOT a Valid Reason for Discounting