In regards to the perspective of a U. S. investor, which of the below statements is FALSE?
Gro...
In regards to the perspective of a U. S. investor, which of the below statements is FALSE?
Group of answer choices
a. The cash flows of assets denominated in a foreign currency expose the investor to uncertainty as to the actual level of the cash flow measured in that foreign currency.
b. The actual number of U. S. dollars that the investor eventually gets depends on the exchange rate between the U. S. dollar and the foreign currency at the time the nondollar cash flow is received and exchanged for U. S. dollars.
c. The cash flows of assets denominated in a foreign currency expose the investor to uncertainty as to the actual level of the cash flow measured in U. S. dollars.
d. If the foreign currency depreciates (declines in value) relative to the U. S. dollar (that is, the U. S. dollar appreciates), the dollar value of the cash flows will be proportionately less, leading to foreign exchange risk.
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