CHECK THESE SAMPLES OF Impact of Foreign Exchange Rate on Stock Returns
The subject of how economic indicators influence stock prices or stock returns has been studied regularly over the years.... Ibrahim (1999) found that macroeconomic forces have systematic influences on stock prices via their influences on expected future cash flows.... These studies have dealt with the subject with different approaches - from considering one of the economic indicator's effect on stock market to considering a bunch of up to 25 economic indicato...
25 Pages
(6250 words)
Research Paper
Out of this amount, 67% is for interest rate contracts, 9% are foreign exchange contracts while credit default risk makes up 8% and at rest is made up of equity contracts, commodity contracts and others.... Due to low risks, returns obtained are also less and may range in the 3 to 6% range (Bartram, et all, 2011).... he derivatives market and risks are different from the equity market where individuals can take up stock trading on their risk....
8 Pages
(2000 words)
Literature review
Influence of Interest rate on U.... This research paper "Impact of US Financial Markets on Economy as a Whole" presents the main risk of an exchange rate with respect to an investment or operation that is that profits recognized will be reduced as soon as it is exchanged with domestic currency whether it is US dollars or the euro.... The risk of exchange rate affects a company's price competitiveness with respect to goods and services when it is offered in foreign currency by the competitor....
4 Pages
(1000 words)
Research Paper
Two risks associated with accepting a foreign investor are exchange rate risk and cultural risk.... An advantage of foreign investors is that they are willing to accept lower equity participation for their investment.... The capital structure policy is a trade-off between risks and returns.... The type of capital structure of a firm will determine the inherent risk profile of a firm's common stock and therefore will affect the rate of return required by investors and the stock's price....
3 Pages
(750 words)
Essay
In a foreign exchange contract, one member agrees to sell and the other agrees to buy at a future date at an exchange rate which is prevailing at the time of the agreement.... In a forward exchange market, the buyer undertakes to purchase a certain amount of a foreign currency against his/her domestic currency at an agreed exchange rate.... They are willing to take risks on the anticipation of making a profit out of the exchange rate fluctuations....
9 Pages
(2250 words)
Assignment
The findings of the study show a positive relationship between oil prices and inflation whereas the growth of the cash flow had a negative relation with the stock returns.... he model determines the pre-and post-bubble period of the stock market and determines the relationship between the macroeconomic factors and stock returns (Azeez & Yonezawa, 2006).... The finding of the study reveals that the exchange rate, export, foreign reserves, and the unemployment rate has a direct relation to the stock returns of the energy sector in the Shanghai stock market....
14 Pages
(3500 words)
Literature review
The paper "Efficient Market Hypothesis of Thai stock Market" describes what comparison of Thailand stock exchange market with other emerging market provides the opportunity for the degree of Thailand stock exchange market development and its future evolution.... Level of the efficiency of Thailand stock exchange market is also determined for a period of four years.... When looked at the overall results of Durbin-Watson for SET100 Index, It was found that stock exchange market of Thailand was not fully efficient and demonstrated the weak form of efficiency during the concerned period of four years....
62 Pages
(15500 words)
Dissertation
The paper "impact of Terrorist Attacks on the Australian Stock Exchange and Algorithmic Trading" is a great example of a social science report.... The paper "impact of Terrorist Attacks on the Australian Stock Exchange and Algorithmic Trading" is a great example of a social science report.... The paper "impact of Terrorist Attacks on the Australian Stock Exchange and Algorithmic Trading" is a great example of a social science report.... n his work Cam (2006) has provided a comprehensive evaluation of the impact of international terrorism on financial markets; especially the September II terrorist attack....
7 Pages
(1750 words)
Report