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u/Legitimate-Raisin562

MULTINATIONAL OPERATIONS DOUBT.
▲ 1 r/CFA

MULTINATIONAL OPERATIONS DOUBT.

EXHIBIT

Based on the exhibit and info given above.

Which of the following statements about the effect of the change in the USD to GBP exchange rate during the year is most accurate? Operating income for Thames would:

a)increase because of the positive effect on revenues.

b)increase because of the positive effect on operating costs.

c)decrease because of the negative effect on operating costs. I had a doubt in this qs, can sb plz help me answer this through logic?

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u/Legitimate-Raisin562 — 1 day ago
▲ 1 r/CFA

Hi all, I had a small doubt in this CFAI qs. Does diversified asset portfolio act as a constrained or unconstrained portfolio? The answers might vary in both the circumstances for the qs below.

"Martinez asks Singh about the possible effects on the portfolio’s information ratio if cash were added to the diversified asset portfolio or if the aggressiveness of the portfolio’s active weights were increased.

  • Statement 1: Adding cash to the portfolio would change the portfolio’s information ratio.
  • Statement 2: Increasing the aggressiveness of active weights would not change the portfolio’s information ratio."

 Which of Singh’s statements regarding the information ratio is correct?

A. Only Statement 1

B. Only Statement 2

C. Both Statement 1 and Statement 2

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u/Legitimate-Raisin562 — 16 days ago