Evaluate each statement independently and select the active currency approach it best describes. Justify each choice. Kamala

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Evaluate each statement independently and select the active currency approach it best describes. Justify each choice.

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Kamala Gupta, a currency management consultant, is hired to evaluate the performance of two portfolios. Portfolio A and Portfolio B are managed in the United States and performance is measured in terms of the US dollar (USD). Portfolio A consists of British pound (GBP)
denominated bonds and Portfolio B holds euro (EUR) denominated bonds.
Gupta calculates a 19.5% domestic-currency return for Portfolio A and 0% domesticcurrency return for Portfolio B.

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