Question
Suppose a European investor invests in the U.S. equity market. If the U.S. equity market generates a positive holding period return in the U.S. currency
Suppose a European investor invests in the U.S. equity market. If the U.S. equity market generates a positive holding period return in the U.S. currency while euro appreciates against the U.S. dollar, which of the following statements is/are guaranteed to be correct?
A. | Holding period return in euro is negative. | |
B. | Holding period return in euro is higher than holding period return in U.S. dollar. | |
C. | Holding period return in euro is positive. | |
D. | Holding period return in euro is lower than holding period return in U.S. dollar. | |
E. | Both B and C are guaranteed to be correct. | |
F. | Both A and D are guaranteed to be correct. |
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