currency risk

CFA Level III
#1

Hi currency risk tend to be smaller for a longer time horizon? can anybody tells me where to find this sentence. Is it true? Thanks

#2

anybody?

#3

ss8 r27 not sure the page… reasons why currency risk is not a barrier to international diversification: -mkt and curr risk are not additive -curr risk can be hedged -if foreign assets are small relative to port then risk is insignificant, same if you have multiple currencies -and lastly, currency risk decreases as time horizon increases because exchange rates tend to revert to fundamentals.

#4

thanks…really appreciate