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    International Financial Management
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    Exam 17: Risk Management and the Foreign Currency Hedging Decision
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    Why Did Miller and Modigliani Claim That Hedging Exchange Rate
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Why Did Miller and Modigliani Claim That Hedging Exchange Rate

Question 21

Question 21

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Why did Miller and Modigliani claim that hedging exchange rate risk was irrelevant to the value of the firm?

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In general,M & M argued that purely fina...

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