An increase in the value of the dollar relative to the yen has a positive effect on the returns of U.S.investors who invest in stocks of Japanese firms.

Question

Quizplus · Accepted Answer

An increase in the value of the dollar relative to the yen means that when U.S. investors convert their returns from Japanese stocks back into dollars, they receive fewer dollars for the same amount of yen, negatively affecting their returns.

An Increase in the Value of the Dollar Relative to the Yen