A cross-border translation method is proposed that accounts for a currency risk premium and the economic interaction between cash flows and exchange rates. These inputs are ignored in the conventional method, which is based on interest rate parity. The proposed method is consistent with the...

In a fundamental dynamic allocation model where the equity price process has both momentum and reversion, reflecting transient mispricing, scenarios are found where typical risk-averse investors prefer dollar cost averaging to plunging a lump sum into an optimal buy-and-hold allocation