-Using the Table Above, If the Current Market Value of the Dollar

question 120

Multiple Choice

-Using the table above, if the current market value of the dollar is 125 francs per dollar

• A) investor A expects dollar appreciation, but B and C expect depreciation.
• B) investor A expects dollar depreciation, but B and C expect appreciation.
• C) all three investors expect the dollar to appreciate.
• D) all three investors expect the dollar to depreciate.

---

Definitions:

Beta

A gauge of the systematic risk or volatility of a security or a portfolio relative to the overall market.

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss, often represented by government bonds.

Market Neutral Bets

Investment strategies aiming to profit from both increasing and decreasing prices in one or more markets, whilst minimizing exposure to market risk.

Considerable Leverage

The use of borrowed capital to increase the potential return of an investment.