Is it just me or does the philosaphy of the answers here seem a tad different than 2008. I totally puked this one up, 25%. The question about local currency depreciation (part 2) really pi$$ed me off. If that statement is correct for 2008, than I clearly am very misguided and screwed on Saturday. To say that investors have “consistently” had “large precentages” of their portfolios wiped out via currency devaluations seems a bit rash to me. Is there just too much post-Argentina (that was 02 correct) written into this 03 question…would this still be right?? Sorry for the spiel…doing good so far otherwise. thx
I would ignore this question. In Emerging markets things change too quickly and 5 years since 2003 exam is a loooong time. p.s. yeah, i got less than 50% right too…
Thx for the feedback. I’m keeping my same, pro-emerging markets, don’t worry about currencies so much philosaphy that I always considered these exams to exhibit.
its a fact that Currency risk in the long - term is a wash …i.e not very significant if you are a long term investor …i those questions are irrelevant now