, can gain little. Third, hedging exchange risk generally allows the U.S., but not Japanese, investors to benefit more from … international diversification. For U.S. investors, the international bond diversification with exchange risk hedging offers a … superior risk-return trade-off than the international stock diversification, with or without hedging. …

motivates the examination of the price risk managementcapabilities of the CBOT’s ethanol futures contract.Standard hedging … two- to eight-week hedging horizons, theethanol futures contract effectively hedges ethanol inventory price risk. The … effectiveness of thehedge increases with the hedging horizon. Thus, ethanol producers and brokers can use theethanol futures market …

This study focuses on hedging effectiveness defined as the proportionate price risk reduction created by hedging. By … overstate the amount of price risk reduction that can be achieved by hedging, (b) the properly computed hedging effectiveness in … the hedge ratio regression will also generally overstate the amount of risk reduction that can be achieved by hedging, (c …

hedging long bespoke positions. In stratifying a portfolio we define Class-A as the widest credits, Class-B as the middle tier … second part of Chapter Four, we perform analysis to find out which credit index should be used in hedging a long bespoke … selection, and stepwise regression methods to find out if we should use multiple indices in our hedging practices. Multiple …

, stock prices drop marginally significantly. Thus, hedging by producers is not necessarily good. This paper, however, finds …

risk. Consistent with corporate hedging theory, the case study finds that hedging contributes to smooth companies' earning … local and foreign currency debt by capital-constrained firms facing exchange rate risk and hedging possibilities. The model … shows that the currency composition of debt and the level of hedging are both endogenously determined as optimal firms …

evaluate the grouping methods in a hedging framework by assessing their ability to reflect relationships consistent with theory …. The empirical findings show that the economic relationships are more consistent with theory within the groups identified …

Hedging effectiveness is the proportion of price risk removed through hedging. Empiricalhedging studies typically … to a second group of data, and examinethe robustness of the hedging strategy by comparing the hedging effectiveness for … out-of-sample hedging effectiveness estimators. Through mathematical andsimulation analysis we determine the following: (a …