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In applying the currency carry trade borrowing from a single funding-currency country and investing into a single investment-currency country implies that the investor takes the
In applying the currency carry trade borrowing from a single funding-currency country and investing into a single investment-currency country implies that the investor takes the country-specific risk. One way to deal with this problem is to borrow from multiple funding-currency countries and invest into multiple investment-currency countries. With this aim in mind, categorize the countries the countries in the following table into funding- and investing-currency groups. Explain your reasoning. In applying the currency carry trade borrowing from a single funding-currency country and investing into a single investment-currency country implies that the investor takes the country-specific risk. One way to deal with this problem is to borrow from multiple funding-currency countries and invest into multiple investment-currency countries. With this aim in mind, categorize the countries the countries in the following table into funding- and investing-currency groups. Explain your reasoning
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