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CFA Level 2
Portfolio Management

Currency Management Strategy for Foreign Investments

Very Easy Asset Allocation Currency Management

Imagine you are a portfolio manager overseeing a fund with significant foreign investments. The fund's performance is highly sensitive to fluctuations in currency exchange rates. You need to implement a strategy to manage the currency risk effectively. Which of the following actions could potentially help in minimizing the impact of currency volatility on the fund’s returns?

Hint

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