Question 5 1 pts Which of the following may be a motivation for firms to undertake hedging? Firms incurs higher hedging costs than investors Firms do not create value for investors by hedging because foreign exchange markets are perfectly efficient. Management has limited knowledge about the firm's foreign exchange exposure and hence investors, rather than the firms, should hedge foreign exchange risks Investors face inherent information asymmetry about the firm's operation including its foreign exchange exposure. Therefore, the firm's management is in the best position to hedge. Firms can use hedging to increase the volatility of cash flows. Financial market rewards riskier firms with higher returns