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Which of the Following Statements Is True

Question 30

Multiple Choice

Which of the following statements is true?

A) Empirical evidence suggests that currency movements and stock market returns are uncorrelated.
B) If a foreign stock market has a high beta with respect to the 0 Index, then the beta of a foreign project with respect to the U.S. market will be the same as its beta with respect to
The foreign stock market.
C) Empirical evidence suggests that currency movements and stock market returns are almost perfectly positively correlated.
D) If a foreign stock market is uncorrelated with the U.S. stock market, then the beta of a foreign project with respect to the U.S. market will be the same as its beta with respect to
The foreign stock market.