Unforseen

soddy1979 Wrote:
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> All three can be used to hedge (albeit 1 & 2 will
> be less effective). High beta stocks and high
> duration bonds will expose the investor to macro
> economic factors in the local market.


That is a long stretch. Additional information is needed to determine if the European Investor wants to continue holding US assets. From the question asked, no one will venture into choosing 1 or 2, not even you would want to do that in the exams.