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Question 54 on the 2010 CFA mock, I missed it. I did the R(u)= R(asset)+ r(FC) then R(H)=R(u)-h(R(forward))
For expected currency return I used interest rates to solve for future spots.
In this case they just did R(H)=R(asset)+ r(forward)
Can someone simplify when to do each scenario? |
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