Exchange Rate Volatility

As we discuss in an earlier chapter, international operations have become increasingly important to U.S. businesses. Consequently, exchange rates and exchange rate volatility have also become increasingly important. Figure 23.3 plots percentage changes in the deutsche mark-U.S. dollar exchange rate and illustrates that exchange rate volatility has increased enormously since the early 1970s.

I Ross et al.: Fundamentals I VIII. Topics in Corporate of Corporate Finance, Sixth Finance Edition, Alternate Edition

23. Risk Management: An Introduction to Financial Engineering

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PART EIGHT Topics in Corporate Finance

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