If the Foreign Currency Is Expected to Depreciate

Multiple Choice

If the foreign currency is expected to depreciate:

A) a foreign currency investment is more likely to show a higher effective rate of return compared with . a domestic investment, than it would if the foreign currency were expected to appreciate
B) a domestic currency investment is more likely to show a lower effective rate of return compared . with a foreign investment, than it would if the foreign currency were expected to appreciate
C) a foreign currency investment is less likely to show a higher effective rate of return compared with a . domestic investment, than it would if the foreign currency were expected to appreciate
D) a foreign currency investment will definitely show a higher effective rate of return compared with a domestic investment