Question #18
Reading: Reading 5 Currency Exchange Rates - Understanding Equilibrium Value
PDF File: Reading 5 Currency Exchange Rates - Understanding Equilibrium Value.pdf
Page: 7
Status: Unattempted
Correct Answer: A
Question
The return distribution of FX carry trade is characterized by:
Answer Choices:
A. negative skewness and negative excess kurtosis
B. negative skewness and positive excess kurtosis
C. positive skewness and positive excess kurtosis
Explanation
FX carry trade return distribution exhibits negative skewness and positive excess kurtosis.