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    Foreign Exchange Mistakes

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    What are the mistakes made by investors in dealing with foreign exchange investments? Provide examples.

    © BrainMass Inc. brainmass.com October 10, 2019, 5:45 am ad1c9bdddf
    https://brainmass.com/economics/international-investment/foreign-exchange-mistakes-516359

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    Investors fail to hedge their foreign exchange investments by using appropriate derivative tools such as futures or options. For example, if an investor has invested in European markets and the Euro weakens against the U.S. dollar during the period of investment, the investor would get less profits or make higher losses (as per ...

    Solution Summary

    The solution discusses the mistakes made by investors in dealing with foreign exchange investments.

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