问题
单项选择题
A domestic investor is purchasing foreign bonds. Which of the following statements regarding the exchange rate risk and price movement of the asset is most accurate（）
A. The depreciation of both the asset and the foreign currency benefits the domestic investor.
B. The appreciation of both the asset and the foreign currency benefits the domestic investor.
C. The appreciation of the asset and the depreciation of the foreign currency benefit the domestic investor.
答案
参考答案：B
解析：
When the foreign currency appreciates, each foreign currency-denominated cash flow buys more domestic currency units-increasing the domestic currency return from the investment. The appreciation of the foreign asset benefits the investor as well.