BASED ON THE INFORMATION IN EXHIBIT 1, WHICH OF THE CURRENCIES,...

20. - CFA 2018 EXAM LEVEL 3 DA4387 LEVEL III CFA MOCK EXAM 2018 AFTERNOON A
CFA 2018 EXAM LEVEL 3 DA4387 LEVEL III CFA MOCK EXAM 2018 AFTERNOON A

20. Based on the information in Exhibit 1, which of the currencies, considered individually, would

most likely have the highest minimum variance hedge ratio versus GBP (note that calculations are

not required)?

A. CAD.

B. USD.

C. Both would have the same minimum variance hedge ratios since both currencies are being

hedged against GBP.