Just as corporations have to deal with “forecasting error” in terms of the deviation of forecast exchange rates relative to the actual future rate, so investors have to deal with “tracking error” within their portfolios, which is the return of the portfolio relative to the investment benchma[...]
Posts Tagged ‘Currency’
July 6th, 2009 - 8:37 am § in Currency
EMERGING MARKETS AND CURRENCY HEDGING
It has been noted that emerging markets have different market properties to those of the developed markets. Here, it is important to sell these out and then in turn relate them to the considerations of passive and active currency risk management. First off, let us look at the major differences that [...]