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What is the point of hedging (as a broader concept) and how is that different from diversification? - What is the point of qualifying for

What is the point of hedging (as a broader concept) and how is that different from diversification?

- What is the point of qualifying for hedge accounting, and what do you have to do to qualify? Though the rules of hedge accounting may be different based on what you are hedging against (fair value vs. cash flow), what is the overall purpose of qualifying for hedge "accounting"?

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