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kotegsom [21]
3 years ago
7

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.
Business
1 answer:
Anettt [7]3 years ago
6 0

Answer:

b. adjusting the discount rate.

Explanation:

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

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