The more relevant stock market returns in both local and dollar-denominated terms. And the connection whether the foreign exchange risk of an investment has been hedged. Introduction: The investors who invest in a foreign stock and the return which is more relevant to the investor is depended upon the hedging of foreign exchange risk.

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Chapter 25, Problem 2PS

Summary Introduction

To determine:

The more relevant stock market returns in both local and dollar-denominated terms. And the connection whether the foreign exchange risk of an investment has been hedged.

Introduction:

The investors who invest in a foreign stock and the return which is more relevant to the investor is depended upon the hedging of foreign exchange risk.

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