We study information and portfolio choices when securities' dividends depend on an aggregate (macro) risk factor and idiosyncratic (micro) shocks, and when investors can acquire costly dividend information. We establish a general result under which investors endogeneously specialize in either...

We develop an empirical model of exchange rate returns, applied separately to samples of developed (DM) and developing (EM) economies' currencies against the dollar. Monetary policy stance of the global central banks, measured via a natural-language-based approach, has a large effect on exchange...