c'z the Fx exposure when investing overseas can be dividided into translation risk and ecnomic risk, so the hedge would be 1+a, and a is largely depend on the corelation between the currency movement and the local investment return, say if they are positively related, the raio gonna be greater than one, if the relation is negative, the hedge ratio gonna be less than one, if they are independent, the ratio could equal to one.
whether it is clear enough?
cheers | 
发表于 2011-5-24 17:04
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