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The next speaker, Clive Smyth, is a member of the exchange rate committee at the Bank of New Zealand.
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The final speaker in the session directed his discussion toward emerging market investments. This discussion, by Hector Ruiz, head of emerging market investment for the Chilean Investment Board, was primarily concerned with how emerging market risk differs from that in developed markets and how to evaluate the potential of emerging market investments. He noted that sometimes an economic crisis in one country can spread to other countries in the area, and that asset returns often exhibit a greater degree of non-normality than in developed markets.
Ruiz concluded his presentation with the data in the tables below to illustrate factors that should be considered during the decision-making process for portfolio managers who are evaluating investments in emerging markets.
Regarding Smyth's statements concerning exchange rate links:
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Answer: A
Explanation:
Explanation/Reference:
Explanation:
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