one$-$half of the funds from each of these sources. The five$-$year interest rates on an Australian dollar loan and a U$.$S$.$ dollar loan are the same.

exposure in Australian dollars, and in fact, would increase its exposure.

exposure in Australian dollars.

exchange rate risk.

not concerned about its exposure to exchange rate risk. Under these conditions, which financing alternative is most appropriate? Briefly explain.

dollars is expected to appreciate over time.

dollars is expected to appreciate over time.

fluctuations.