14-9 The greater the volatility of foreign exchange rates given any net exposure position,the greater the fluctuations in value of the foreign exchange portfolio.

Question

Quizplus · Accepted Answer

The statement is true. Greater volatility in exchange rates means that there can be larger fluctuations in the value of the foreign exchange portfolio, which includes any net exposure position. This can increase the level of risk for investors and traders.

14-9 the Greater the Volatility of Foreign Exchange Rates Given