Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • August 2005 (Revised April 2014)
  • Teaching Note
  • HBS Case Collection

Innocents Abroad: Currencies and International Stock Returns

By: Mihir A. Desai, Kathleen Luchs, Elizabeth A. Meyer and Mark Veblen
  • Format:Print
  • | Language:English
  • | Pages:37
ShareBar

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.

Keywords

Diversification; International CAPM; CAPM; Home Bias; Currency Risk; Exchange Rate Risk; International Stock Market Returns; Financial Services Industry; United States; Currency Exchange Rate; Stocks; Financial Markets; International Finance; Investment Return; Currency; Risk and Uncertainty; Emerging Markets; Investment Portfolio; 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 Teaching Note 206-012, August 2005. (Revised April 2014.)
  • Purchase

About The Author

Mihir A. Desai

Finance
→More Publications

Related Work

    • August 2005 (Revised April 2014)
    • 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, Kathleen Luchs, Elizabeth A. Meyer and Mark Veblen
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College