asset and currency correl emerging, developed, currency, investing

cfa10yrplan

When investing in foreign markets Sims and Davis should be aware of the correlation between the asset and currency. In developed and emerging markets, what is the typical correlation between the asset and currency?

Developed Emerging


A) Negative Positive


B) Positive Negative


C) Positive Positive

liangfeng

bannisja - where are you accessing the 2009 cfa mock? i didn't know previous cfa mocks were available.

pennyless

A is correct. I will save you the reasons Schweser offered.

Unforseen

Why A?????

canadiananalyst

I'll go with A

bkballa

B? Since emerging markets tend to be more export driven?

aidebaobao

A. Emerging market countries tend to be positively correlated w/their currency; opposite for developed.