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CFA Level 2
Portfolio Management

Currency Management Techniques

Very Easy Asset Allocation Currency Management

Consider a global investor who has a diversified portfolio containing equities from the United States, European markets, and emerging markets. The investor is concerned about currency fluctuations affecting the returns on their international investments. To mitigate this risk, the investor is considering using currency management techniques.

Which of the following techniques is primarily used to protect against adverse currency movements and to ensure that the value of the investments is maintained in the investor's home currency?

Hint

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