An investor holds an international bond fund. Regarding the performance of the fund, which of the following statements are TRUE?

An investor holds an international bond fund. Regarding the performance of the fund, which of the following statements are TRUE?



I If the foreign currency value rises against the dollar, the fund's Net Asset Value will increase

II If the foreign currency value rises against the dollar, the fund's Net Asset Value will decrease

III If the dollar falls against the foreign currency, the fund will have an inferior performance relative to dollar denominated funds

IV If the dollar falls against the foreign currency, the fund will have a superior performance relative to dollar denominated funds



Answer: I and IV


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