Register
The increased risk of foreign investments is most often incorporated in capital budgeting models​ by: ​(Select the best choice​ below.) A. calculating certainty equivalents. B. adjusting the discount rate.
205k views
2 votes
The increased risk of foreign investments is most often incorporated in capital budgeting models​ by: ​(Select the best choice​ below.) A. calculating certainty equivalents. B. adjusting the discount rate. C. international diversification. D. hedging with financial derivatives. E. reducing market risk.

User Hassen Bennour
by
5.5k points

1 Answer

6 votes

Answer:

b. adjusting the discount rate.

Step-by-step explanation:

The increased risk of foreign investments is most often incorporated in capital budgeting models​ by adjusting the discount rate. This reason is whenever the foreign exchange risk is perceived to be high then the discount rate is increased by to incorporate higher risk.

User Brad Green
by
4.7k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.1m questions

6.7m answers

Other Questions

Misk Co. purchased the following securities during 20X7 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities: I. Debt securities bought and held for the
Which of the following should be considered last when searching for financing? Family members Banks Commercial finance companies Credit cards I'm guessing it's C but idk
Explain the similarities and differences between how both producers and consumer use money
Donna's philosophy as she coordinates the marketing efforts is to keep in mind the company's overarching strategy, and to ensure that all marketing activities send a consistent message, beginning with
Brett buys a new cell phone for​ $100. he receives consumer surplus of​ $80 from the purchase. how much does brett value his cell​ phone?
Link Copied!