When the dollar strengthens, the reported consolidated earnings of U.S.-based MNCs are ____ affected by translation exposure. When the dollar weakens, the reported consolidated earnings are ____ affected.

a.	favorably, favorably affected but by a smaller degree
b.	favorably, favorably affected by a higher degree
c.	unfavorably, favorably affected
d.	favorably, unfavorably affected

One argument for exchange rate irrelevance is that:

a.	MNCs can hedge exchange rate exposure much more effectively than individual investors.
b.	investors can invest in a diversified stock portfolio of MNCs that have different exposures to exchange rates.
c.	purchasing power parity does not hold very well.
d.	MNCs are typically not diversified across numerous countries.