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Hedging currency exposures

Which of the following is cited as a good reason for NOT hedging currency exposures

Answer choices:

a) Shareholders are more capable of diversifying risk than management.
b) Currency risk management through hedging does not increase expected cash flows.
c) Hedging activities are often of greater benefit to management than to shareholders.
d) All of the above are cited as reasons NOT to hedge.

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Which of the following is cited as a good reason for NOT hedging currency exposures

Answer choices:

a) Shareholders are more capable of diversifying risk than management.
b) Currency risk management through hedging does not increase expected cash flows.
c) Hedging activities are often of greater benefit to management than to shareholders.
d) All of the above are cited as reasons NOT to hedge.

The correct answer is "All of the ...

Solution Summary

Answer to a multiple choice question on hedging currency exposures.

$2.19