Market's Pricing and Risk-Return Trade-Offs Associated with Covenant-Lite Issues

2020 ◽  
Author(s):  
Adnan Anil Isin ◽  
Martin Jacob ◽  
Kevin McMeeking ◽  
Rajesh Tharyan
Keyword(s):  
Risk Return ◽  
Trade Offs

International Investment and Exchange Rate Risk: An Experimental Analysis / Eine experimentelle Untersuchung zur internationalen Vermögensdiversifikation

1997 ◽  
Vol 216 (3) ◽  
Author(s):  
Tobias F. Rötheli
Keyword(s):  
Exchange Rate ◽  
Portfolio Choice ◽  
International Investment ◽  
Normative Theory ◽  
Economic Losses ◽  
Exchange Rate Risk ◽  
Risk Return ◽  
Rate Risk ◽  
Trade Offs ◽  
Domestic Investments

SummaryThe experimental evidence gathered in this study indicates that a preference for domestic investments exists even under fixed exchange rates and in the absence of factors commonly understood to give rise to asymmetric portfolios. Adding exchange rate risk does not - contrary to theory - induce many individuals to hold more domestic assets. Non-professional investors in particular are prone to make choices at variance with the normative theory. This is traced back to misjudgments concerning the available risk-return trade-offs. It is also documented that flexibility of the exchange rate induces economic losses through inefficient portfolio choice. This even holds in a situation where exchange rate risk can be avoided by costless hedging.

International Arbitrage Strategies and Risk-Return trade-offs

2012 ◽  
Vol 2012 (1) ◽  
pp. 13717
Author(s):  
Ingo Ralf Kleindienst ◽  
Christian Geisler Asmussen ◽  
Thomas Hutzschenreuter
Keyword(s):  
Risk Return ◽  
Trade Offs
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