This is an international business paper that needs to discuss exchange rate models, currency risk and currency risk management and the quantification of risk in international investments.
. You should expect analytical, theoretical/conceptual, and empirical questions. Analytical questions require calculations, explanations of your logic in your analytical work, and interpretation of your results. Conceptual questions require crafting an argument based on theory and interpretation of real-life scenarios based on a theoretical framework. Empirical questions may require discussion of methodologies, empirical strategies, and interpretation of empirical findings. The exam question may be composed of a combination of all three.
I would recommend you to be well versed in exchange rate models, currency risk and currency risk management, and quantification of risk in the context of international investments. Pay close attention to the theoretical and empirical literature on these issues as well as current issues as they relate to these areas.
The exam’s purpose is to evaluate your ability to use field-specific knowledge to craft arguments and offer solutions through critical thinking and analysis.