NO.PZ202209060200004506
问题如下：
Which of the suggestions Stone outlines for Palma in selecting the proposed investments is most likely correct? The one regarding:选项：
A.local currency investment is most likely correct. B.spread advantage is most likely correct. C.the credit cycle is most likely correct.解释：
SolutionB is correct. Investments in securities denominated in a foreign currency can often produce higher yields than domestic investments produce, particularly in emerging market countries. However, if the portfolio manager chooses to hedge the foreign exchange (FX) exposure, the cost of hedging can offset a significant amount of the yield advantage, thus reducing the relative value advantage. This may not be the case for currencies that are pegged because the portfolio manager may choose not to hedge the FX because the foreign currency will most likely be more stable, assuming there is no devaluation.
A is incorrect because investments in countries where the currency is pegged may not require FX hedging, given more stability in the exchange rate.
C is incorrect because credit cycles may vary across regions and this can be used to the advantage of the portfolio manager to diversify.
老师好，这个second的说明我不是特别理解：
原文是：“Second, he should avoid local currency investments in countries where the exchange rate is pegged.”意思应该是说不应该投资固定汇率的国家的货币——这个我理解是对的，因为pegged固定汇率对外汇储备的压力比较大，同时那个国家也很难保持货币政策自主权。
但是我不是很理解大案“investments in countries where the currency is pegged may not require FX hedging, given more stability in the exchange rate”，这个问题和FX hedge有什么区别吗
