Purpose – Seeks to analyze the role of population and wealth in determining capital movements between countries. Design/methodology/approach – By applying the Clark‐Jokung 50 percent portfolio theorem, considers the specific case of a two country world where the cumulative conditional...

Explains arbitrage, hedging, and speculation from the standpoint of a participant in the foreign exchange market-whether an individual trader or an institutional trader-who possesses analytical skill, economically sound judgment, and who has access to market data. In the foreign exchange market,...