The question is whether it minimizes or shifts risk. On Wed, Jun 28, 2006 at 10:59:32AM -0700, Jim Devine wrote: > > In theory, true hedging minimizes risk. It's really nothing but > diversifying or taking out insurance. It doesn't "pay" in money terms > as much as it stabilizes income. If a fund repeatedly gets a big > return, it's likely not hedging at all. >
-- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
