in local currency                in us currency
average annual return                            13.35                              13.94
annual standard deviation                      47.95                               43.8
       your us client is interested in investing in non us makets, so you have collected the rewards and risks of foreign investing   
During your presentation the client notices the above information on the recent performance of the Australian stock market   
Your client says wait a minute as a us investor buying australian stocks I have two sources of risk. First there is uncertianty about the movement    in australian share prices 47.95. on top of that I am exposed to the extra risk of fluctuations in the exchange rate between the two currencies.   However, the stdev in us 43.8 turns out to be lower than the volatility of the Australian market. This doesn’t make sense: even though I have extra risk from exchange rate fluctuations the volatility in US dollar terms is lower. Are you sure these numbers are correct?   
What do you say? Explain your logic