Question: If I hedge with the risk-shifting method, which of the following risks do I still have to face? Why? I Translation risk II Transaction risk

If I hedge with the risk-shifting method, which of the following risks do I still have to face? Why?

I Translation risk

II Transaction risk

III Economic risk

a. I only

b. II only

c. III only

d. I and III only

e. None of the combinations above.

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