Currency hedging - recap and a ques

NO - final answer is 8% (6+2 + 6*2) = 8.12

The currency return would be +2.67%, why are you using +2%?

thats given in the question. the expected appreciation = 2%

Oh, well why wasnt it provided :slight_smile:

bips Wrote: ------------------------------------------------------- > thats given in the question. > > the expected appreciation = 2% well then it solve everything. if it is provided you use this for unhedged and you use IRP for hedged