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If a US Investor Buys Foreign Stock, His Dollar-Denominated Return Will Increase

Question 11

Multiple Choice

If a U.S. investor buys foreign stock, his dollar-denominated return will increase if the dollar:


A) appreciates relative to the foreign currency.
B) depreciates relative to the foreign currency.
C) remains unchanged relative to the foreign currency.
D) moves to a net gain position relative to all foreign currencies.

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