- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics
- Reading 10. Currency Exchange Rates: Understanding Equilibrium Value
- Subject 9. Short-Term Forecasting Tools
CFA Practice Question
If properly deployed, technical trading rules can help FX fund managers:
II. the crash risks of carry trades.
I. the risk of excessive positions.
II. the crash risks of carry trades.
A. I only
B. II only
C. I and II
Explanation: Such rules can help investors avoid taking extreme contrarian positions, and keep investors from leaning too heavily the wrong way when carry trade unwinds are occurring.
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