The total dollar return on a foreign security can be decomposed into

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The total dollar return on a foreign security can be decomposed into all of the above: dividend/interest income, capital gains (losses) and currency gains (losses). Dividend/interest income is the income earned from owning the security, capital gains (losses) are the changes in the value of the security, and currency gains (losses) are the changes in the exchange rate between the foreign currency and the investor's domestic currency. All three components contribute to determining the total dollar return of the foreign security.

The Total Dollar Return on a Foreign Security Can Be