Which One of the Following Is NOT a Relevant Variable

question 37

Multiple Choice

Which one of the following is NOT a relevant variable when determining the investor's optimal currency hedge?

• A) correlations between currencies
• B) the relative interest rates in both countries
• C) the cost of hedging
• D) the portions of the investor's portfolio allocated to foreign securities

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Definitions:

Formal Operations

The stage of cognitive development, as proposed by Piaget, characterized by the ability to think logically about abstract concepts and hypothetical situations.

Concrete Operations

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events and objects.

Adolescence

The transition period from childhood to adulthood, extending from puberty to independence.

Menarche

The occurrence of the first menstrual cycle in female individuals, marking the onset of fertility.