Publisher Summary This chapter focuses on two puzzles related to international financial
markets. The first puzzle concerns explanations for deviations from uncovered interest parity …

Publisher Summary This chapter discusses that if investment and consumption opportunity
sets do not differ across countries, the fact that countries use different currencies has no …

The emergence of new equity markets in Europe, Latin America, Asia, the Mideast and
Africa provides a new menu of opportunities for investors. These markets exhibit high …

We investigate predictability in national equity market returns, and its relation to global
economic risks. We show how to consistently estimate the fraction of the predictable …

This article systematically examines the importance of exchange rate movements and
industry competition for stock returns. Common shocks to industries across countries are …

There is now considerable evidence suggesting that estimated betas of unconditional
capital asset pricing models (CAPMs) exhibit statistically significant time variation. Therefore …

This paper empirically examines multifactor asset pricing models for the returns and
expected returns on eighteen national equity markets. The factors are chosen to measure …

This paper examines the impact of operational hedges of US multinational corporations
(MNCs) on their exchange rate exposure. The two important contributions of this study are …

The recent boom in oil prices has attracted many investors to oil companies in search of both
returns and diversification benefits. This analysis of the risk factors of investing in the oil and …

Theoretical arguments suggest that as the degree of a country's home bias increases, the
global risk sharing between domestic and foreign investors will reduce and thereby increase …