answersLogoWhite

0


Best Answer

Naive hedging is where taking a hedge position without taking into consideration the level of hedging required. The optimal hedging position should be such that the expected position from the hedge perfectly offset the underlying risk.

Naive hedging (over hedging) could potentially lead to a substantial gain or loss position from hedging.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is a naive hedge?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is a naive?

Naive hedging is where taking a hedge position without taking into consideration the level of hedging required. The optimal hedging position should be such that the expected position from the hedge perfectly offset the underlying risk. Naive hedging (over hedging) could potentially lead to a substantial gain or loss position from hedging.


What is a hedge-pig?

hedge pig= hedge hog


What is the sentence of naive?

His naive nature was the reason of his failure. Naive is the word used in this sentence.


What do you call a group of bushes?

Hegh


Is hedge a noun?

If you are talking about "a hedge", as in a row of bushy plants or such, then yes, it is a noun. Hedge can also be used as a verb though, as in "to hedge a garden".


Is naive adverb?

No, naive is an adjective.The adverb form of the word would be naively.


What is the plural of hedge?

The plural of hedge is hedges.


Where is the collective noun hedge?

The noun hedge is used as a collective noun for a hedge of herons.


What is the mean of hedge?

The meaning of a "hedge" would be best described as a "hedge of protection" against the volatile market. Also used in the term Hedge Fund


What do you call a person who can be influenced?

Gullible, naive, green, trusting, unsophisticated.Gullible, naive, green, trusting, unsophisticated.Gullible, naive, green, trusting, unsophisticated.Gullible, naive, green, trusting, unsophisticated.


Is an ingenuous person naive or crafty?

Naive


What part of speech is naive?

The synonyms for 'naive' are: inexperienced, immature, adolescent, green, raw, youthful.