systemic real risk realizations; (c) financial integration fosters domestic financial development and the liquidity of equity … in the form of improved countries' growth prospects and lower systemic real risk …

We explore the different factors that drive expected returns in world markets. Our research offers two innovations …. First, the introduction of the Euro currency unit greatly reduces the complexity of including foreign exchange risk in asset … currency risk factors. Second, when combining the currency factors with a group of economic factors, we measure the incremental …