CFAI 2011 Mock:Question 46
Currency risk should not prevent us from investing globally. Currency risk can be eliminated by hedging with currency forwards or by diversifying across multiple currencies. Furthermore, the correlations
between equity and currency markets are so low that overall currency risk is minimal.
46. In his response to Bruch’s Statement 1, Severn is least likely correct with respect to:
A. hedging with currency forwards.
B. diversifying across multiple currencies.
C. correlations between equity and currency market
Why is C not the answer? Answer is B but even C looks incorrect to me, how can they generalize saying correlation b/w equity and currency markets is low? |
发表于 2011-7-11 19:31
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