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When investors decide to hold foreign portfolio, they need to take currency risk. Why (or why not) and how do you think they should hedge

When investors decide to hold foreign portfolio, they need to take currency risk. Why (or why not) and how do you think they should hedge this additional risk? If currency risk can be hedged, do you think currency risk should generate risk premium? In other word, do you think there should be a non-zero currency risk premium?

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