Which of a) through d) is true?
A) A particular political risk is more likely to be diversifiable by local investors than by international investors.
B) A political risk such as an election imposes higher costs of capital on MNCs held by globally diversified investors.
C) From the perspective of managers in the multinational corporation, political risk is not diversifiable.
D) Global investors are exposed to a multinational corporation's total risk, measured by standard deviation of return in the investors' functional currencies.
E) None of the above

Question

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The Answer of Which of a) through d) is true?
A) A particular political risk is more likely to be diversifiable by local investors than by international investors.
B) A political risk such as an election imposes higher costs of capital on MNCs held by globally diversified investors.
C) From the perspective of managers in the multinational corporation, political risk is not diversifiable.
D) Global investors are exposed to a multinational corporation's total risk, measured by standard deviation of return in the investors' functional currencies.
E) None of the above

Which of A) Through D) Is True