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Which of the following statements is cited by proponents of hedging as good reasons to hedge foreign currency exposures? A. Shareholders are more capable of
Which of the following statements is cited by proponents of hedging as good reasons to hedge foreign currency exposures?
A. Shareholders are more capable of diversifying risk than management.
B. None of these are given as reasons why firms should hedge.
C. Hedging activities do not add value to the firm, but they use precious resources.
D. Hedging activities are often of greater benefit to management than to shareholders.
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