Key Features:Gives the first account of the major, empirical, stylized facts for financial asset returnsShows how innovative models for prices can be estimated and used to make forecastsContains pioneering contributions about the volatility of asset pricesProvides a summary of many recent...

This paper examines the importance of exchange rate exposure in the return generating process for a large sample of non-financial firms from 37 countries. We argue that the effect of exchange rate exposure on stock returns is conditional and show evidence of a significant return impact to...