Question

_____ risk is the uncertainty associated with the price at which the currency from one country...

_____ risk is the uncertainty associated with the price at which the currency from one country can be converted into the currency of another country.

a. Expropriation

b. Political

c. Exchange rate

d. Earnings repatriation

e. Beta

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Answer #1

Option C is correct

Exchange rate risk is the uncertainity associated with the price at which the currency from one country can be converted into the currency of another country

> Expropriation risk is the risk associated with the project where the government may take the part or full project

> Political risk is the risk associated with the project due to the political decisions of the country in which project is considered

> Earnings repatriation risk is the risk of transfering the earnings of the project to the foreign country

> Beta risk is the probability of incorrect decision making in selecting the project

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