Currency Exposure Management Strategies

Very Easy Asset Allocation Currency Management

As an investment manager overseeing a global equity portfolio, you are concerned about the impact of currency fluctuations on the returns of your investments. Currency management is essential in controlling risk and enhancing returns.

Which of the following strategies focuses directly on managing currency exposure within a portfolio?

Using derivatives to hedge against currency risk.

Investing solely in domestic equities.

Increasing the allocation to emerging markets.

Hint

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