What is an exchange rate risk? A. A risk that the value of your investment will...

What is an exchange rate risk?

A. A risk that the value of your investment will change due to securities being denominated in a currency other than the Canadian dollar

B. A risk that does not affect businesses that are within the country’s national borders

C. Both a & b

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Expert Solution

Exchange rate risk is the risk of changing currency value on investment or assets or revenue of a business whose valuation is done in terms of a currency other than home currency. It can affect the businesses that are within the countrys national borders if the business is either into imports or exports.

Answer is A. A risk that the value of your investment will change due to securities being denominated in a currency other than the Canadian dollar

jeff jeffy answered 2 years ago

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