Which of the following statements is/are true about international equity markets?

i. Investors who prefer to have high Sharpe ratio in their investment portfolio should concentrate their investment in a country which has a higher Sharpe ratio than other countries and should not consider international diversification

ii. The correlation between exchange rate changes and local equity market returns can be negative

iii. Because of the imperfect correlation between stocks, portfolio variances decline with the addition of stocks as the systematic risk is diversified away.