International Business 303 - Doc

Running head: INTERNATIONAL BUSINESS 303
International Business 303
Name of the Student:
Name of the University:
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INTERNATIONAL BUSINESS 303
1
Table of Contents
Definition of the Topic:..............................................................................................................2
Summary of the Article:.............................................................................................................2
Discussion of the key terms of the article:.................................................................................3
Reference and Bibliography:......................................................................................................5

INTERNATIONAL BUSINESS 303
2
Definition of the Topic:
Hedging is mainly identified, as the overall provision, which is used by organisation
sand investors to hedge their risk exposure in the market. The overall evaluation of hedging
measure and its impact on performance of the portfolio could be identified.
Summary of the Article:
In addition, the article analysed in the section mainly evaluates “Systematic Foreign
Exchange Hedger for Multicurrency Portfolios using Genetic Algorithms”. The article mainly
evaluates the impact of current hedging on portfolio by using the static hedging measure. In
addition, article evaluates the currency hedging costs, which is mainly conducted by the
investors for improving the level of returns from investment. Moreover, the volatility spur is
mainly reduced by the funds mangers by utilising the currency hedging measures. The article
mainly helps in understanding the need for currency hedging by funds management who have
invested adequately in different economies and countries. Furthermore, the article also states
that the easing policy used by central bank in major economies have led to the increment in
volatility of currencies, which is mainly mitigated by utilising the different hedging measures.
The article also indicates the extensive usage of hedging measure that is been conducted by
asset management for minimising the negative impact from market risk (Reuters.com, 2018).
Hedging is mainly an adequate measure which is used by investor to curb the
volatility in the capital market and save guard their portfolio against the negative price
actions. Moreover, the hedging measure can be conducted with the help of different
derivative instruments such as options, futures, and swaps, as it requires low capital blockage
and reduces risk exposure of the traders. The article also indicates that asset managers is have
increased their exposure in the international market in form of equity and bond investment,