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One argument for exchange rate irrelevance is that: A. MNCs can hedge exchange rate exposure much more effectively than individual investors. B. purchasing power parity
One argument for exchange rate irrelevance is that:
A. | MNCs can hedge exchange rate exposure much more effectively than individual investors. | |
B. | purchasing power parity does not hold very well. | |
C. | investors can invest in a diversified stock portfolio of MNCs that have different exposures to exchange rates. | |
D. | MNCs are typically not diversified across numerous countries.
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