Abstract
International asset pricing requires to take into account currency risk. Equilibrium models of the international capital market show that risk premia should be associated with currency risks. This is supported by empirical evidence. This paper reviews the existing theoretical and empirical literature and discusses their practical implications.
| Original language | English |
|---|---|
| Pages (from-to) | 9-22 |
| Number of pages | 14 |
| Journal | European Financial Management |
| Volume | 3 |
| Issue number | 1 |
| Publication status | Published - Mar 1997 |
| Externally published | Yes |
Keywords
- Currency risk
- Foreign exchange international asset pricing