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Explain what is exchange risk in investment. If you have investments in foreign securities, explain whether you prefer the domestic currency to appreciate or depreciate
Explain what is exchange risk in investment. If you have investments in foreign securities, explain whether you prefer the domestic currency to appreciate or depreciate when the foreign securities are sold. For foreign securities, briefly explain what other fundamental/risk factors are relevant. Furthermore, what would be the additional benefit for investing in foreign securities in addition to domestic securities?
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