Economic exposure
How economic exposure can be defined in order to exchange the risk?
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Economic exposure is defined as the possibility that the firm’s cash flows and therefore its market value can be affected through the unexpected exchange rate changes.
Mutual funds that hold both bonds and stocks. Some asset-allocation funds follow specified allocation percentages and others take advantage of current condition. Those that take advantage of current condition is higher risk, because the fund manager tries to adjust the allocations to take advanta
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