About: Exchange rate risk in investments denominated in foreign exchange in the period of the financial and economic crisis     Goto   Sponge   NotDistinct   Permalink

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  • The article discusses the evaluation of the influence of the EUR/USD exchange rate on the yield-rate of dollar share investments from the viewpoint of the Euro investor in varying investment periods with emphasis on the period of the financial and subsequent economic crisis targeted mainly at the period 2008 - 2010. The outputs of the paper are realized for the following investment periods: one-year, three-year, five-year, seven-year, ten-year and fifteen-year. The supplementary investment period is the twenty-year period, which due to the small number of observations is characterised by low informative value. The share investments denominated in USD are represented by investments in the S&P 500 Total Net Return that also considers reinvestment in the period 1988 - 2010. The basic methodical tool of the paper is quantification of the factors that influence the yield-rate of the foreign currency investments in the reference currency of the investor. Quantification mainly attaches to the ratio of the influence of the EUR/USD exchange rate on the yield-rate of the dollar share investments from the viewpoint of the Euro investor. From the calculations done, it follows that the period of the financial and economic crisis related to the decline in the American share market increased the ratio of the influence of the development of the EUR/USD exchange rate on the yield-rate of the share investments in this market in all the monitored periods, including the long-term periods (e.g. 10 years), for which the influence of the development of the exchange rate is generally marginal according to the rest of the authors.
  • The article discusses the evaluation of the influence of the EUR/USD exchange rate on the yield-rate of dollar share investments from the viewpoint of the Euro investor in varying investment periods with emphasis on the period of the financial and subsequent economic crisis targeted mainly at the period 2008 - 2010. The outputs of the paper are realized for the following investment periods: one-year, three-year, five-year, seven-year, ten-year and fifteen-year. The supplementary investment period is the twenty-year period, which due to the small number of observations is characterised by low informative value. The share investments denominated in USD are represented by investments in the S&P 500 Total Net Return that also considers reinvestment in the period 1988 - 2010. The basic methodical tool of the paper is quantification of the factors that influence the yield-rate of the foreign currency investments in the reference currency of the investor. Quantification mainly attaches to the ratio of the influence of the EUR/USD exchange rate on the yield-rate of the dollar share investments from the viewpoint of the Euro investor. From the calculations done, it follows that the period of the financial and economic crisis related to the decline in the American share market increased the ratio of the influence of the development of the EUR/USD exchange rate on the yield-rate of the share investments in this market in all the monitored periods, including the long-term periods (e.g. 10 years), for which the influence of the development of the exchange rate is generally marginal according to the rest of the authors. (en)
Title
  • Exchange rate risk in investments denominated in foreign exchange in the period of the financial and economic crisis
  • Exchange rate risk in investments denominated in foreign exchange in the period of the financial and economic crisis (en)
skos:prefLabel
  • Exchange rate risk in investments denominated in foreign exchange in the period of the financial and economic crisis
  • Exchange rate risk in investments denominated in foreign exchange in the period of the financial and economic crisis (en)
skos:notation
  • RIV/62156489:43110/11:00177073!RIV12-MSM-43110___
http://linked.open...avai/riv/aktivita
http://linked.open...avai/riv/aktivity
  • Z(MSM6215648904)
http://linked.open...iv/cisloPeriodika
  • v tisku
http://linked.open...vai/riv/dodaniDat
http://linked.open...aciTvurceVysledku
http://linked.open.../riv/druhVysledku
http://linked.open...iv/duvernostUdaju
http://linked.open...titaPredkladatele
http://linked.open...dnocenehoVysledku
  • 198606
http://linked.open...ai/riv/idVysledku
  • RIV/62156489:43110/11:00177073
http://linked.open...riv/jazykVysledku
http://linked.open.../riv/klicovaSlova
  • financial and economic crisis; investment; exchange rate risk (en)
http://linked.open.../riv/klicoveSlovo
http://linked.open...odStatuVydavatele
  • CZ - Česká republika
http://linked.open...ontrolniKodProRIV
  • [7BCA2C05D5D4]
http://linked.open...i/riv/nazevZdroje
  • Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
http://linked.open...in/vavai/riv/obor
http://linked.open...ichTvurcuVysledku
http://linked.open...cetTvurcuVysledku
http://linked.open...UplatneniVysledku
http://linked.open...iv/tvurceVysledku
  • Šoba, Oldřich
http://linked.open...n/vavai/riv/zamer
issn
  • 1211-8516
number of pages
http://localhost/t...ganizacniJednotka
  • 43110
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