Foreign exchange risk-interest rate and exchange rates

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Reference no: EM1346061

In international cash management, managers have choice between managing only foreign exchange risk or managing foreign exchange and interest rate risk together. Considering only nominal changes in exchange rates and nominal interest rates, do you anticipate the inclusion of interest rate risk in analysis to suggest that the cash portfolio is more or less risky than an examination of foreign exchange risk or foreign exchange and interest rate risk together? Answer as completely as possible.

Reference no: EM1346061

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