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what are the empirical evidences of the advantages conferred by currency hedging over not hedging?
Asked by Gopi Nepal






Answer By

I'm not sure if your asking about benefits of hedging one currency over another or if you are asking if there is evidence of currency traders providing significant levels of alpha. International corporations hedge currency so global earnings aren't affected by converting to the domestic currency and will provide more stable financial statements. Some hedge fund managers and currency traders have proven to be successful at capitalizing on currency inefficiencies.