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The Currency Risk Effects from Holding an Investment Valued in an Overseas

Question 3

Multiple Choice

The currency risk effects from holding an investment valued in an overseas currency will result in:


A) a rise in the Australian dollar value of the investment if the Australian dollar falls relative to the overseas currency
B) a rise in the Australian dollar value of the investment if the Australian dollar rises relative to the overseas currency
C) a fall in the Australian dollar value of the investment if the Australian dollar rises relative to the overseas currency
D) both a and c

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