The Return That a Domestic Investor Receives on a Foreign

Multiple Choice

The return that a domestic investor receives on a foreign investment is equal to

A) the interest rate on the foreign investment minus the interest rate on a comparable domestic investment.
B) the appreciation rate of the foreign currency minus the appreciation rate of the domestic currency.
C) the interest rate on the foreign investment times the appreciation rate of the foreign currency.
D) the interest rate on the foreign investment minus the rate of appreciation of the domestic currency.