. First, the introduction of the Euro currency unit greatly reduces the complexity of including foreign exchange risk in asset … pricing models. We use a synthetic Euro excess return along with a Yen excess return to assess country equity sensitivities to …

the Euro adoption has minimal effects on market integration …At a time of historic challenges to the viability of the Eurozone, we assess the contribution of the EU and the Euro to … equity market integration in Europe. We use a simple and essentially model free measure of bilateral market segmentation: two …