This paper examines the importance of exchange rate risk in the return generating process for a large sample of non … exchange rates themselves as a source of time-variation in currency risk premia. For the entire sample the return premium … exchange rate risk on stock returns is predominantly a cash flow effect as opposed to a discount rate effect. …

This paper examines the importance of exchange rate risk in the return generating process for a large sample of non … exchange rates themselves as a source of time-variation in currency risk premia. For the entire sample the return premium … exchange rate risk on stock returns is predominantly a cash flow effect as opposed to a discount rate effect. …

Based upon the foundations of mean-variance decision-making theory, we demonstrate that a change in the risk situation …. Given a new risk situation, whether a revision of the hedging-strategy is appropriate will depend upon the elasticity of … risk aversion. The elasticity of risk aversion is a decisive indicator; however, it is rarely scrutinized in the literature …

research on monetary aggregation and policy can most advantageously focus on extensions to exchange rate risk and its …. The relevant theory for multilateral aggregation with exchange rate risk has been derived by Barnett (2007) and Barnett …

. - Worldwide interest rates will be lower than the current average due to the elimination of currency risk. Such gains are …