A currency's misvaluation versus an index of other currencies, termed the currency's multilateral misvaluation, depends on the index weights. This study clarifies the idea of consistency in multilateral misvaluation and provides instructive empirical illustrations using several currency index...

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...

Cover -- Contents -- Acknowledgments -- Review of Foreign Exchange Rates -- Chapter 1: Global Risk and Return -- Chapter 2: The International CAPM -- Chapter 3: Hurdle Rates for Overseas Operations -- Chapter 4: Converting Hurdle Rates and Expected Cash Flows Across Currencies -- Chapter 5:...

For individual stocks of 46 countries, this study investigates empirical differences in discount rate estimates between three risk-return models of interest to managers who perform discounted cash flow valuation analysis: (1) the traditional (local) CAPM; (2) the global CAPM (GCAPM), where the...