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The Glover Scholostic Aid Foundation has received o 20 million global government bond portfolio from a Greek donor. This bond portiolio will be held in
The Glover Scholostic Aid Foundation has received o 20 million global government bond portfolio from a Greek donor. This bond portiolio will be held in euros and monoged separately from Glover's existing U.S. doller.denominoted ossets. Although the bond portiolio is currently unhedged, the portiolio monoger. Faine Sotio, is investigoting vorious alternatives to hedge the currency risk of the portfolio. The bond portfolio's current allocotion and the relevont country performance doto are given in Exhibits 1 snd 2 . Historical correlstions for the currencies being considered by Sofio ore given in Exhibit 3 . Sofo expects that future returns and correlotions will be opproximstely equal to those given in Exhibits 2 and 3. Exhibit 1, Glover Scholostic Aid Foundation Current Allocation Globol Government Bond Portolio Exhibit 2 Country Performence Doto (in local currency) Required: Colcuibte the expected totol onnual return (euro-bosec) of the current bond portiolio if Sofio decides to leave the currency risk unhedged. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places
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