Investors would be willing to hold foreign investments even if the foreign investments yield lower expected returns than the domestic investments,if:
A) There is a negative risk premium on domestic currency.
B) The foreign exchange market is efficient.
C) The foreign currency carries no risk premium.
D) There is a positive risk premium on domestic currency.

Question

Quizplus · Accepted Answer

The Answer of Investors would be willing to hold foreign investments even if the foreign investments yield lower expected returns than the domestic investments,if:
A) There is a negative risk premium on domestic currency.
B) The foreign exchange market is efficient.
C) The foreign currency carries no risk premium.
D) There is a positive risk premium on domestic currency.

Investors Would Be Willing to Hold Foreign Investments Even If