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D Question 5 2 pts You are an international investor considering hedging foreign exchange rate exposure. If you decide to hedge using a forward exchange

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D Question 5 2 pts You are an international investor considering hedging foreign exchange rate exposure. If you decide to hedge using a forward exchange rate contract, it will: reduce the volatility of the position in your domestic currency not perfectly hedge the position if there is a non-zero return on the underlying asset O reduce your overall return in your domestic currency lead to a hedging loss if the foreign currency depreciates significantly

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