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Naive hedging is where taking a hedge position without taking into consideration the level of hedging required. The optimal hedging position should be such that the expected position from the hedge perfectly offset the underlying risk.
Naive hedging (over hedging) could potentially lead to a substantial gain or loss position from hedging.
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What is the sentence of naive?
His naive nature was the reason of his failure. Naive is the word used in this sentence.
How do you say naive in French?
Naive in French is "naïf" for a male and "naïve" for a female.
Is naive adverb?
Naive is an adjective that describes someone who is lacking experience or judgment. It is not an adverb, which is a word that modifies a verb, adjective, or other adverb.
Naive in a sentence?
The novice investor had a naive perception that all stocks only go up in value.
How is naive defined?
Naive is sometimes defined as ignorant, meaning easy to persuade toward a certain thought or idea. Naive people can be easily persuaded by such things as propaganda.
