Adverse exchange rate movements can transform otherwise profitable investments into unprofitable investments.

Question

Quizplus · Accepted Answer

Adverse exchange rate movements can cause a decrease in the value of a currency, which can result in lower returns or losses for investors who have invested in assets denominated in that currency. This can lead to an otherwise profitable investment becoming unprofitable due to the impact of exchange rate fluctuations.

Adverse Exchange Rate Movements Can Transform Otherwise Profitable Investments into Unprofitable