Over the long run, a hedged portfolio usually has a return less than that of an unhedged portfolio.

Name: Over the long run, a hedged portfolio usually has a return less than that of an unhedged portfolio.
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Hedging strategies are designed to reduce risk, which often means sacrificing potential higher returns for stability, leading to lower returns over the long run compared to an unhedged portfolio that fully exposes itself to market volatilities and opportunities for higher gains.

Over the Long Run, a Hedged Portfolio Usually Has a Return