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  • March 2004 (Revised October 2013)
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Innocents Abroad: Currencies and International Stock Returns

By: Mihir A. Desai, Kathleen Luchs, Elizabeth A. Meyer and Mark Veblen
  • Format:Print
  • | Language:English
  • | Pages:22
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Abstract

What do international stocks contribute to the portfolio of a U.S. investor? How do currencies interact with stock price movements in determining the benefits of international diversification? This case helps students compare the risks and returns of foreign stock markets with each other and with the U.S. market and to examine the risks and returns of international diversification. Students must calculate returns, adjust for currencies, derive correlations, and map efficient frontiers based on raw data. To obtain executable spreadsheets (courseware), please contact our customer service department at custserv@hbsp.harvard.edu.

Keywords

Diversification; International CAPM; CAPM; Home Bias; Currency Risk; Exchange Rate Risk; International Stock Market Returns; United States; Currency Exchange Rate; Stocks; Financial Markets; International Finance; Investment Return; Currency; Risk and Uncertainty; Emerging Markets; Investment Portfolio; Financial Services Industry; United States; Australia; Canada; China; Germany; India; Japan; United Kingdom

Citation

Desai, Mihir A., Kathleen Luchs, Elizabeth A. Meyer, and Mark Veblen. "Innocents Abroad: Currencies and International Stock Returns." Harvard Business School Case 204-141, March 2004. (Revised October 2013.)
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About The Author

Mihir A. Desai

Finance
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Related Work

    • March 2004 (Revised May 2014)
    • Faculty Research

    Innocents Abroad: Currencies and International Stock Returns

    By: Mihir A. Desai, Elizabeth A. Meyer and Mark Veblen
    • March 2004 (Revised October 2013)
    • Faculty Research

    Innocents Abroad: Currencies and International Stock Returns

    By: Mihir A. Desai, Kathleen Luchs, Elizabeth A. Meyer and Mark Veblen
Related Work
  • Innocents Abroad: Currencies and International Stock Returns By: Mihir A. Desai, Elizabeth A. Meyer and Mark Veblen
  • Innocents Abroad: Currencies and International Stock Returns By: Mihir A. Desai, Kathleen Luchs, Elizabeth A. Meyer and Mark Veblen
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