Exchange rate movements of many currencies, against the dollar, are highly correlated and will therefore not offset. Investors in MNCs can hedge their investments on their own to account for exchange rate risk.TIn the following table, indicate whether each of the statements is an argument for the relevance of exchange rate risk for MNCs, or an argument against the relevance of exchange rate risk for MNCs. Statement Argument For Relevance Argument Against Relevance Exchange rate movements of many currencies, against the dollar, are highly correlated and will therefore not offset. Investors in MNCs can hedge their investments on their own to account for exchange rate risk.he interest rate differential between any two countries will be offset by the change in the spot rate of one of the currencies. This summary most closely describes which of the following theories? 

International Fisher effect (IFE) 

Interest rate parity (IRP)

Purchasing power parity (PPP) 

Direct foreign investment (DFI)