Which of the following statements regarding foreign currency risk is least accurate? Foreign currency risk: A)
| is about twice that of foreign bond risk. |
| B)
| is about twice that of foreign stock risk. |
| C)
| is often diversified away in a portfolio of foreign assets. |
|
Foreign currency risk is only about half that of foreign stock risk on average. It is about twice that of foreign bond risk however. Much of it can be diversified away in a portfolio of currencies. |