2009 mock Q 48

Could somebody explain the answer?


most folk don’t have that exam bro

What you have the 2009 mock also?

Seriously dude, at least volunteer to distribute the 2009 exam before asking questions about it…

oh, yes

To recoup your Karma points, you now have to distrubute the test to the 3 AFers who replied to your thread.


puts me a tricky situtation. I don’t think whether i can share/mail etc…because of the CFAI statement -

“…copying, posting to any website, emailing, distributing and/or reprinting the mock exam for any purpose.”

no hard feelings man. It’s just the rules.

Kidding bro… probably I would not had any time to go back to the 2009 mock either. I am so under the water with my preparation, I still have to do the past CFAI exam (2009) and CFAI mock (2012). I seem to blank out on little little things!

same here…forgetting stuff…too many things

The client is a french company invested in Fund C which is 100% T bonds investments…

so the value at the end of investment horizon is known with certainity (only risk free return), he has left with the uncertainity relating to conversion at the end in euros…so TRANSLATION risk

It’s about translation risk (you can link it to Multinational Operations, Level 2)

If you are worrying about an investment (assets) you have in a diff country; diff currency = > you worry about translation risk when converting.

thanks folks. why can’t it be transaction risk ?

Eco Risk = loss of sale a domestic exporter might face if domestic currency appreciates.

Translation = decline in value of assets (investments)

Transaction = for future purchase of goods…