justin88

goodman2011 Wrote:
-------------------------------------------------------
> B he should hedge the local market risk together

It's actually that they don't know gain/loss ex-ante.

I just thought the answer was interesting.

"You're lying!"

To be perfectly hedged to foreign movements have to know terminal value of portfolio as well.



Edited 1 time(s). Last edit at Tuesday, May 24, 2011 at 02:37PM by Paraguay.