The risk of the foreign project is ________ the risk of Canadian domestic projects because the foreign project contains ________ that the domestic projects often do not contain.

Question

Quizplus · Accepted Answer

The risk of the foreign project is unlikely to be exactly the same as the risk of Canadian domestic projects because the foreign project contains residual exchange rate risk that the domestic projects often do not contain. Residual exchange rate risk arises due to the possibility of unexpected exchange rate changes, which can affect the cash flows of the foreign project.

The Risk of the Foreign Project Is ________ the Risk