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Which of the following statement is incorrect? Firms cannot manage risk through hedging: entering into a financial agreement that does not offset or guard against
Which of the following statement is incorrect? Firms cannot manage risk through hedging: entering into a financial agreement that does not offset or guard against risk. When the dollar is weakening against the Mexican peso, business improves for U.S. companies exporting goods to Mexico. In general, the correlation of returns between a U.S. stock and a foreign stock tends to be lower than between two U.S. stocks. Exchange rates fluctuate every day due to changing world conditions. Most of the answers are correct
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