Suppose your client says, I am invested in Japanese stocks but want to eliminate my exposure to

Question:

Suppose your client says, “I am invested in Japanese but want to eliminate my exposure to this market for a period of time. Can I accomplish this without the cost and inconvenience of selling out and buying back in again if my expectations change?”
a. Briefly describe a strategy to hedge both the local market risk and the currency risk of investing in Japanese Briefly explain why the hedge strategy you described in part (a) might not be fully effective.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...