the current account balance is then posited to argue that real exchange rates exhibit mean‐reversionary behavior. Findings … rates exhibit mean‐reversionary behavior. Extensive empirical evidence is cited that accords with this theoretical …‐adjusted profit margin's dependency on the real exchange rate and the analytical proof that the Marshall‐Lerner condition implies mean …

strategy performance. Two measures that characterize investment strategies within a mean‐variance framework, an activity … examined when risky asset returns are mean reverting. Design/methodology/approach – Returns are assumed to follow a … multivariate Ornstein‐Uhlenbeck process, where reversion to a time‐varying mean is governed by an additional variable set, similar …