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CFA Level 2
Portfolio Management

Currency Management Strategy in a Strong Dollar Environment

Medium Asset Allocation Currency Management

An investment manager is considering the impacts of currency exposure in a globally diversified portfolio. The manager believes that the U.S. dollar will strengthen in the upcoming year due to potential economic policies being implemented. To manage currency risk effectively and take advantage of this situation, the manager needs to decide on an appropriate asset allocation strategy.

Which of the following strategies would best align with the manager's view on the U.S. dollar and effectively manage currency fluctuations?

Hint

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% Correct60%