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The foreign exchange carry trade has historically produced attractive investment returns. Explain how the carry trade can be implemented, discuss its performance and explain why

The foreign exchange carry trade has historically produced attractive investment returns.

Explain how the carry trade can be implemented, discuss its performance and explain why you think it has earned such attractive returns positive average returns by its exposure to volatility risk.

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Implementing the Carry Trade The carry trade involves borrowing a currency with a low interest rate and investing in a currency with a higher interest ... blur-text-image

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