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When companies are willing to diversify their portfolios internationally and aware of overseas investment opportunities A-they should not bother to read or to understand the
When companies are willing to diversify their portfolios internationally and aware of overseas investment opportunities
A-they should not bother to read or to understand the prospectus, since it's probably written in a foreign language.
B-they should invest only in dollars or euros.
C-they trade one market imperfection, information asymmetry, for another, exchange rate risk.
D-they benefit from an expanded opportunity set.
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