You decide to invest internationally. You use $1000 to buy shares in a British company. At the time of your investment, the stock sold for 50/share and the exchange rate was 1 = $2. One year later, the stock rises to 60. When you sell the stock and exchange your 60 for dollars, you only get $450 since the pound has fallen to 1 = $0.75. This loss of value is an example of political risk.

True or False