$\frac{-}{3\mathrm{.}5}$

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.

I and II only

I and III only

III and IV only

I, II$,$ III and IV