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If the Investor Hedges the Exchange Rate Risk When Investing

Question 64

Multiple Choice

If the investor hedges the exchange rate risk when investing internationally


A) the risk-return efficiency is likely to be superior.
B) the expected return to the U.S.dollar investor is approximately the same whether the investor hedges the exchange rate risk in the investment,or remains unhedged.
C) to the extent that the investor establishes an effective hedge to eliminate exchange rate uncertainty,the risk will be reduced.
D) all of the options

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