Hedging strategy; Removes losses Helps reduce risk Helps make excess profits Is independent of risk

It seems like you're asking about the benefits of a hedging strategy in finance. Here's a step-by-step explanation:

1. Removes losses: Hedging is a strategy used to offset potential losses that may be incurred by an investment. It involves taking an opposite position in a related security. For example, if you own shares in a company, you might hedge against potential losses by buying a put option, which increases in value as the stock price falls.

2. Helps reduce risk: Hedging can help reduce the risk of adverse price movements in an asset. By taking a position that is opposite to the one in the underlying asset, investors can potentially offset some of the risk associated with the price changes in the underlying asset.

3. Helps make excess profits: While the primary purpose of hedging is not to make a profit but to reduce risk, it can sometimes result in excess profits. For example, if an investor correctly hedges against a market downturn, they could make a profit from the hedging instrument even as their original investment falls in value.

4. Is independent of risk: This statement is not entirely accurate. The effectiveness of a hedging strategy is actually highly dependent on the risk it is designed to offset. The more accurately the hedging strategy can predict and counteract the risk, the more effective it will be. However, it's true that the hedging strategy itself does not add additional risk to the investment; it is designed to manage and reduce risk.