1 Which of the following statements are true? Select all that apply. Review Later A fixed/pegged exchange rate will have exchange rate stability In a freely floated exchange rate, monetary policy independence and free flow of capital are achieved A freely floated exchange rate will have exchange rate stability A fixed/pegged exchange rate will have monetary independence and free flow of capital 2 Which of the following currency pairs are correct? Select all that apply. Review Later USD/GBP EUR/JPY USD/CAD JPY/CAD 3 A Portfolio Manager usually chooses his/her own investment policy and monitors adherence to the policy him/herself. Review Later True False 4 A trader is long EUR/USD at 1.2780 and has a target of 1.2790, but wants to limit losses to 1.2775. If they have entered an OCO order, and EUR/USD trades below 1.2775 and then above 1.2790, what would be the resulting trade? Review Later Sell at 1.2790 Sell at 1.2790 and again at 1.2775 Sell at 1.2775 Sell at 1.2775 and again at 1.2790 5 Which of the following currency pairs are correct? Select all that apply. Review Later JPY/CAD USD/GBP EUR/JPY USD/CAD 6 In year 1, a fund increases from $179m to $194m (gross asset value). The fund has a 3/15 structure with a hurdle rate of 5.5%. How much are the performance fees for this year, assuming they are charged after management fees are first deducted from the gross asset value? Review Later $0.065m $0.09975m $0.1217m There are no performance fees for this year