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    Multinational Finance
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    Exam 19: International Portfolio Diversification
  5. Question
    The Variance of Foreign Bond Returns to Domestic Residents Is
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The Variance of Foreign Bond Returns to Domestic Residents Is

Question 1

Question 1

True/False

The variance of foreign bond returns to domestic residents is primarily due to return variance in foreign market returns and to a lesser extent to variance in exchange rates.

Correct Answer:

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