True or False. Because an MNC cannot be sure how exchange rates will change over time, it may prefer to concentrate its cash among deposits denominated in a single currency.

True or False. The systematic risk of a multinational corporation's projects cannot be diversified away because all the firm's projects are exposed to this risk.

True or False. The greater the uncertainty about a project's forecasted cash flows, the larger the discount rate that should be applied to the cash flows (other things being equal).