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What is the purpose of a hedge? Multiple Choice 0 To keep your neighbours off of your property. 0 To adjust the financial sta
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Answer #1

Answer - To reduce or eliminate exchange rate risk and to limit exchange losses.

Explanation -

This fund is used to prevent the investments in equity or cash market that do not incur losses and make it to the least as it set the loss to a known amount and reduction in risk will always mean a reduction in the potential profit also so it is the strategy not by which we will make huge money rather by which we can reduce or eliminate exchange rate risk.

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