The Return and Variance of Return to a U

Multiple Choice

The return and variance of return to a U.S.dollar investor from investing in individual foreign security i are given by:

A) R_i$ = (1 + R_i) (1 + e_i) − 1 and Var(R_i$) = Var(R_i)
B) R_i$ = R_i + e_i and Var(R_i$) = Var(R_i) + Var(e_i)
C) R_i$ = (1 + R_i) (1 + e_i) - 1 and Var(R_i$) = Var(R_i) + Var(e_i) + 2Cov(R_i,e_i)
D) none of the options