A Foreign Exchange Trader Indicates That He or She Can

question 99

Multiple Choice

A foreign exchange trader indicates that he or she can make a predictable return of 10% per year in carry trade between Japanese yen and Australian dollars with a standard deviation of 50%. What is the Sharpe ratio for this carry trade?

• A) 500%
• B) 50%
• C) 20%
• D) 10%

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Definitions:

Visionary Leadership

Visionary leadership brings to the situation a clear sense of the future and an understanding of how to get there.

Organisational Structures

The system of tasks, workflows, reporting relationships, and communication channels that link the diverse parts of an organization.

Core Principle

A fundamental belief or guideline that serves as the foundation for a system, program, or organization's operation.

Visionary Leadership

Involves leading an organization towards a unique and inspiring vision of the future, often characterized by innovation and risk-taking.