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You're a US resident. You invest in a European stock for a year. During this year the euro depreciates against the US dollar. Is this

You're a US resident. You invest in a European stock for a year. During this year the euro depreciates against the US dollar. Is this likely to increase your dollar return from this investment? Explain why or why

Assume you hold a globally diversified portfolio of stocks. Can this exchange rate risk be reduced or even eliminated through diversification? Explain why or why not.

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