answersLogoWhite

0

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

14y ago

What else can I help you with?

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.


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".


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 plural form of hedge?

The plural form of hedge is hedges.


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 is the synonym of gullible?

A synonym of gullible is naive.


What is tagalog of naive?

The equivalent for the word "naive" in Tagalog language is "engot".