Which of the following statements is true when calculating the translation risk using currency / currency method ?
A: Real assets are exposed to translation risk.
B: All liabilities are exposed to translation risk.
C: Financial assets are not exposed to translation risk
D: Both real and financial assets are exposed to translation risk.
A: Real assets are exposed to translation risk.
B: All liabilities are exposed to translation risk.
C: Financial assets are not exposed to translation risk
D: Both real and financial assets are exposed to translation risk.
举一反三
- Which of the following is not one of the types of currency risk? A: Transaction risk B: Translation risk C: Liquidity risk D: Economic risk
- Which of the following is NOT a risk factor for a country's risk premium（） A: Business risk. B: Financial risk. C: Technology risk.
- The risk that results from converting the value of foreign-denominated assets into a common currency is called A: translation exposure. B: transaction exposure. C: foreign exposure. D: economic exposure.
- Foreign exchange risk mainly includes ( ) A: transaction risk B: translation risk C: economic risk D: interest rate risk
- Which of the following statements regarding a country risk premium is TRUE A: Country risk arises from expected economic and political events. B: Firms in different countries assume significantly different financial risk. C: Exchange rate risk is relatively small and can be ignored.