​If a US Firm Needs Dollars but Borrows a Foreign Currency Portfolio

Multiple Choice

​If a U.S. firm needs dollars but borrows a foreign currency portfolio, the uncertainty of the portfolio's effective financing rate will be highest if the correlations between currencies in the portfolio are ____ and the individual volatility of each currency is ____.

A) ​high; low
B) ​high; high
C) ​low; low
D) ​low; high