The exchange rate risk of a single foreign country office investment can be substantial, as
currency conversions can reduce foreign currency-denominated return by 10,200% and
amplify risk by about 580%. However, the impact of currency volatility on return and risk is
statistically insignificant. The potential gain from international office property investment
diversification is substantial. The hypothesis that currency risk has a significant impact on the
return from a fully diversified international office investment is rejected. The relatively low …

International investment has gained concern among investors because of enhanced
portfolio return and reduced risk attendant to global diversification. However, the enhanced
return appears to be negated by exchange rate volatility. In view of this, fluctuating exchange
rates has caused currency risk to be considered the most common risk of overseas
investments. Unfortunately, the significance of exchange rate volatility to international office
investments have not been fully examined. Therefore, this study sought to examine the …