If the Stock Market of a Foreign Country Is Consistently

question 47

Multiple Choice

If the stock market of a foreign country is consistently up when the dollar value of the currency is down,

• A)there may not be a great deal of exchange rate risk for a U.S.-based investor.
• B)there will be a great deal of exchange rate risk for a U.S.-based investor.
• C)then investors can ignore diversification.
• D)none of the above

---

Definitions:

Emotional Instability

A condition characterized by rapid and intense emotional changes that are disproportionate to the situation at hand, affecting one's psychological well-being.

Alzheimer's

A progressive neurodegenerative disease characterized by memory loss, cognitive decline, and personality changes.

Evidence-Based Practice

The conscious, explicit, and judicious use of current evidence in making decisions about the care of individual patients.

Innovative

Featuring new methods; advanced and original in ideas or products; leading to something being better than before.