Abstract
Think of an asset with value V where V depends on a number of variables some of which are exchange rates. The value is the sum of future discounted cash flows. Let E denote expectation and ∂ denote partial derivative, the economic exposure of this asset to currency ei is then given by
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© 1999 Richard Friberg
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Friberg, R. (1999). The Evidence. In: Exchange Rates and the Firm. Palgrave Macmillan, London. https://doi.org/10.1057/9780333982372_7
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DOI: https://doi.org/10.1057/9780333982372_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-41053-8
Online ISBN: 978-0-333-98237-2
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)