search query: @indexterm Foreign exchange / total: 493
reference: 95 / 493
| Author: | Solnik, B. |
| Title: | The world price of foreign exchange risk: some synthetic comments |
| Journal: | European Financial Management
1997 : MAR, VOL. 3:1, p. 9-22 |
| Index terms: | FOREIGN EXCHANGE RISK MANAGEMENT |
| Language: | eng |
| 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. Applying a purely domestic model to the international context is routinely done in finance. The problem is that, most of the time, such an extension can only be valid under heroic assumptions. |
SCIMA