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Which of the following statements is incorrect ? A US investor invests in a Chinese stock that is denominated in Chinese yuan. She will have

Which of the following statements is incorrect?

A US investor invests in a Chinese stock that is denominated in Chinese yuan. She will have an increase in her dollar-denominated return if the Chinese yuan strengthens against the dollar
The standard deviation of returns, calculated as the square root of the variance of returns, is a measure of total risk of an asset or portfolio.

International mutual funds offer investors global diversification without exchange rate risk.

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