"A cross-hedging strategy is most effective with currencies that are <u>highly positively correlated</u>; currency diversification is most effective with currencies that are <u>not highly correlated.</u>"
<u>Explanation:</u>
Cross hedging is a idea that is used to mange risk. This is done by investing in two securities. Those two securities are correlated and that too positively. Which means their prices goes in the identical direction. It helps in minimizing the risks associated.
So,A cross hedging strategy is most efficient when currencies are positively correlated,
Currency diversification is a strategy where more than one currency is used in investment. It leads to less exchange rate risk. This strategy is most effective with currencies that are not highly correlated. Which means increase in one currency causes no increase in other currency.
Your answer is
<span>B. an invoice</span>
Answer:
A family in a distant state gives bottled water to its dog, but a family in the hurricane area cannot find bottled water to drink.
Explanation: Hurricane is a natural phenomenon which occurs as a result of violent storms developing and accumulating in a given area, Hurricane can be very devastating destroying lives and properties. the most misallocation of resource considering the options is when a dog in A family in a distant state gives takes bottled water, but a family in the hurricane area cannot find bottled water to drink.
