The Effects of Fluctuating Foreign Exchange Rates May

Multiple Choice

The effects of fluctuating foreign exchange rates may
I. increase a U. S. investor's rate of return.
II. decrease a U. S. investor's rate of return.
III. can be avoided by investing in ADRs.
IV. can be avoided by investing in mutual funds that specialize in foreign stocks.

A) I and II only
B) I and III only
C) III and IV only
D) I, II, III and IV