few questions from my day of studies... 2011, only, reference, currency, multiple

random_walker47

1.) #46 on the 2011 mock says currency risk cannot be “eliminated” through holding many assets of differing currencies (diversifying). However I have seen multiple questions make reference to “diversifying away” risk by doing just this.
Intuitively i would say you obviously can’t eliminate it by just having a diversified basket of currencies, only reduce, but the wording “diversify away” leads me to think that this is a poor choice of words, and they should explicitly say “eliminate”, or “reduce” - to be clear. Thoughts?
2.) #56 implies that trade date accounting can be used and you wouldn’t violate this requirement by posting the accounting entry 3 days after the trade. Isn’t the point of trade date accounting so you post it ON the day?
3.) AMC lets you use hypothetical [modeled] or back-tested returns so long as it is clearly labeled as such. I think this is the case with GIPS as well, but could someone confirm? Thank you.

bpdulog

3 in GIPS you can’t link simulated return but can disclosed it in footnote

Windjammer

can`t link modelled returns at all in GIPS, so why even disclose that.
trade date accoutning is correct but the real world is all about t + 3. so you post the trade, book in the composite and it is added later at the price of the trade date.
can`t eliminate fx risk 100%. I think it`s the choice of words.

bchadwick

46 was strictly word play dude. Next time, I’m going to RTMFQ.