Hedging Currency Risks Essay by Master Researcher

Hedging Currency Risks
This paper offers a critical analysis regarding the subject of hedging currency risks.
# 84045 | 1,800 words | 7 sources | 2005 | US


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Description:

This eight page paper examines hedging currency risks. The author notes that in critically discussing the view that the efforts by companies to hedge currency risks are of little value to the owners of such companies, it is evident that there is much support for this view. For example, the writer points out that in a Mercer Management Consulting survey of 111 pension fund managers in North America, Australia, Japan and the UK, 86% of respondents said they consider the impact of hedging currency risks to be nil over the long term.

From the Paper:

"In critically discussing the view that the efforts by companies to hedge currency risks are of little value to the owners of such companies, it is evident that there is much support for this view. For example, "in a Mercer Management Consulting survey of 111 pension fund managers in North America, Australia, Japan and the UK, 86% of respondents said they consider the impact of hedging currency risks to be nil over the long term". But this view is not universal by any means, for more than sixty-percent of the respondents in this survey believed that hedging currency risks "can have a short-term effect on volatility. Despite this reservation, 79% say they would allow fund managers to carry out hedging operations"."

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APA Format

Hedging Currency Risks (2005, December 01) Retrieved September 20, 2020, from https://www.academon.com/essay/hedging-currency-risks-84045/

MLA Format

"Hedging Currency Risks" 01 December 2005. Web. 20 September. 2020. <https://www.academon.com/essay/hedging-currency-risks-84045/>

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