Assume That There Are Several Foreign Currencies That Exhibit a Higher

Assume that there are several foreign currencies that exhibit a higher interest rate than the UK interest rate. The UK firm has a higher probability of generating a higher effective yield on a portfolio of currencies (relative to the domestic yield) if:

A) the foreign currency movements against the UK pound are highly correlated.
B) the foreign currency movements against the UK pound are perfectly positively correlated.
C) the foreign currency movements against the UK pound exhibit low correlations.
D) none of the answers above would have any impact on the probability of a foreign cash investment generating a higher effective yield than a UK investment.