From the perspective of a U.S. investor, the cash flows of assets denominated in a foreign currency offer the investor to certainty as to the actual level of the cash flow measured in U.S. dollars.

Question

Quizplus · Accepted Answer

The cash flows of assets denominated in a foreign currency are subject to currency exchange rate fluctuations, which can affect the level of cash flow measured in U.S. dollars. Therefore, there is no certainty as to the actual level of cash flow measured in U.S. dollars.

From the Perspective of a U