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Preferred term

hedging  

Definition

  • Hedging is an investment strategy designed to reduce the potential volatility in the value of a portfolio by reducing the risk of having losses embedded within that portfolio. A perfect hedge eliminates the possibility of future losses and thus preserves the initial value of the portfolio. [Source: Encyclopedia of Governance; Hedging]

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URI

https://concepts.sagepub.com/social-science/concept/hedging

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