CFAI reading 18-currency-eoc # 12 -I do not understand the answer. If she thinks active currency management is not needed, passive currency hedge should be 100%?
No. As stated in text, she is just supporter of approach that during long run, all currencies tend to be mean reverting so active hedge is not needed. Active hedge, by her opinion just causes additional transaction costs and thus affect earnings. This is one of 3 approaches to currency management.