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Rexburg Industries invested $30 million in Finland. At the time of the investment the exchange rate is $1.20 = 1.00. A year later the exchange
Rexburg Industries invested $30 million in Finland. At the time of the investment the exchange rate is $1.20 = 1.00. A year later the exchange rate was the same, but the Finish government expropriated Rexburg's assets paying 25 million in compensation. This is an example of: Multiple Choice None of the options. political risk. political risk. Expropriation by the Finish government did not involve risk since 25 million * $1.25/1.00 = $30 million. loooo exchange rate risk. market imperfections
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