In the CFAI text, one of the end of chapter questions said that return in domestic currency is ‘approxiately’ equal to the local currency return if the foreign currency risk is hedged away with currency futures. On the last PM question, we had to compare the hedged (with currency futures) and unhedged returns. I was able to calculate the Unhedged returns, but running dangerous out of time. For the hedged returns, I made an assumption that the foreign currency risk is 0 as a approximation. Thus, the hedged return was just the return in the local market. Did anyone else make this assumption/approxiamation? Afterwards, I explained that the hedged return is positive, while the unhedged return is negative. I wonder if I will get full credit.