1. Jochen M. Schmittmann, “Currency Hedging for International Portfolios,” IMF Working Paper 10/151 (June 2010), p. 12.

2. John Y. Campbell, Karine Serfaty-De Medeiros, and Luis M. Viceira, “Global Currency Hedging,” Journal of Finance 65(2010), pp. 87–121.

3. Andre F. Perold and Evan C. Schulman, “The Free Lunch in Currency Hedging: Implications for Investment Policy and Performance Standards,” Financial Analysts Journal 44 (May/June 1988), pp. 45–50.

4. See Gary L. Gastineau, “The Currency Hedging Decision: A Search for Synthesis in Asset Allocation,” Financial Analysts Journal (May–June 1995), pp. 8–17 for a broad overview of the currency hedging debate.

5. Campbell, Serfaty-De Medeiros, and Viceira, “Global Currency Hedging,” p. 4.

6. Recall from modern portfolio theory the important role of correlation in determining the benefits to diversification.