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