Currency exchange risk cannot be minimized because of the unpredictability of currency fluctuations.

Question

Quizplus · Accepted Answer

Currency exchange risk can actually be minimized through various strategies such as hedging, diversification, and using financial instruments like options and futures. While currency fluctuations are unpredictable, their impact on investments can be reduced through these risk management techniques.

Currency Exchange Risk Cannot Be Minimized Because of the Unpredictability