contestada

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.

Respuesta :

Tundexi

Answer:

b. adjusting the discount rate.

Explanation:

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