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Business, 20.09.2020 14:01 mahdy43

A client is heavily invested in international mutual funds. He is concerned about fluctuations in foreign currency exchange rates. What should the RR advise him? (A)No impact should be seen in the client's holdings as long as the portfolio consists of established, large capitalization companies. (B)Companies in the fund that are located outside the U. S. and sell products internationally will discover that U. S. products are cheaper to foreign consumers when U. S. currency declines in relation to foreign currencies. (C)Transactions in this type of fund are converted to U. S. currency, so the customer will not see an impact due to fluctuating exchange rates. (D)Only when stability exists in exchange rates is it wise to invest in international funds, because this is the only way to be sure that returns will be positive from such investments.

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