Question: Explain how exchange rate fluctuations affect the return from a foreign market, measured in dollar terms. Discuss the empirical evidence for the effect of exchange

Explain how exchange rate fluctuations affect the return from a foreign market, measured in dollar terms. Discuss the empirical evidence for the effect of exchange rate uncertainty on the risk of foreign investment.

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It is useful to refer to Equations 154 and 155 of the text Exchange rate fluctuations mostly ... View full answer

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