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Is the portfolio less risky in u.s. dollar terms

Problem:

A. U.S. investor has a portfolio of French, German, Italian, and Dutch bonds. Is this portfolio less risky in U.S. dollar terms now that the euro is the common currency of Europe, since the portfolio is now only exposed to a single exchange rate rather than to four exchange rates for the franc, mark, lira, and guilder?

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Finance Basics: Is the portfolio less risky in u.s. dollar terms

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