Regarding operating risk exposure,which of the following statements is NOT true?
A) they are more difficult to hedge than transaction risk exposures
B) they are easier to forecast than translation risk exposures
C) they necessitate more managerial attention and extensive analysis
D) only a and b
E) all of the above are true

Question

Regarding operating risk exposure,which of the following statements is NOT true?
A) ​they are more difficult to hedge than transaction risk exposures
B) ​they are easier to forecast than translation risk exposures
C) ​they necessitate more managerial attention and extensive analysis
D) ​only a and b
E) ​all of the above are true

Quizplus · Accepted Answer

Operating risk exposures are not necessarily easier to forecast than translation risk exposures. In fact, they may be just as difficult to forecast due to the many variables involved in operating activities. Therefore, statement B is not true. Statements A and C are true, making choice D incorrect, and statement E is a combination of all the statements, so it is incorrect as well.

Regarding Operating Risk Exposure,which of the Following Statements Is NOT