Assume you are a junior member of the IPC (Investment Policy Committee) of a money management firm that manages a large pension fund. 10% of the investments, approximately $100,000,000 are invested in...


Assume you are a junior member of the IPC (Investment Policy Committee) of a money management firm that manages a large pension fund. 10% of the investments, approximately $100,000,000 are invested in companies that are foreign and operate exclusively in the Eurozone (Those countries that operate as members of the European Union and use the euro as the single currency). The IPC is concerned about the recent instability of the Euro and asks you to work up some recommendations on how to hedge that portion of the portfolio that is exposed to currency and interest rate risks, as well as any other risks you may perceive.



Jun 06, 2022
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