Currency Risk and Time horizon. currency

Iginla2010

Why does currency risk tend to be smaller over a longer time horizon?
When does it say this in the curriculum?!!

bboo

reading 40 towards the end.

also should take a smaller hedge ratio when:
% of portfolio in foreigns is small
currency fluctuations has a low correlation with portfolio fluctuation
and if home currency is weak.

Analti_Calte

FinNinja, Thank you very much!

But I just went through reading 40 and did not find any of those points you mention.

I am also looking towards the end of the reading..
Which books are you using?