Which of the following is a risk associated with international investments?

Currency risk is indeed a significant factor associated with international investments. This risk arises from fluctuations in exchange rates, which can impact the value of returns when they are converted back into the investor's home currency. For instance, if an investor buys stock in a foreign company and the value of that country’s currency declines against the investor’s domestic currency, the returns realized upon conversion could be lower than anticipated, or even negative. This is particularly relevant for investors who may not have hedged their foreign currency exposure, making them vulnerable to market movements. Consequently, shifts in currency values can directly affect the performance of international investment portfolios, highlighting the importance of understanding and managing currency risks in global investment strategies.