Foreign asset returns under exchange rate uncertainty: A classroom experiment.
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| Title: | Foreign asset returns under exchange rate uncertainty: A classroom experiment. |
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| Authors: | Scanlan, Mark1 (AUTHOR) |
| Source: | Journal of Education for Business. Feb/Mar 2022, Vol. 97 Issue 2, p133-138. 6p. 1 Chart. |
| Subject Terms: | *Foreign students, Foreign assets, Return on assets, Foreign investments, International economic relations, Foreign exchange rates |
| Abstract: | This paper provides details on a classroom experiment that focuses on returns to foreign assets given uncertain future exchange rates. Students are assigned the role of foreign analysts and decide how much to invest abroad given their expectations about future exchange rates. The experiment allows students to practice calculating the returns to foreign investments, understand the benefits to skill in predicting future exchange rates, and observe the limitations to that skill. The experiment is ideal for undergraduate students in macroeconomics or international economics courses in a classroom that would allow students to separate into distinct groups. [ABSTRACT FROM AUTHOR] |
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| Database: | Education Research Complete |
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| Abstract: | This paper provides details on a classroom experiment that focuses on returns to foreign assets given uncertain future exchange rates. Students are assigned the role of foreign analysts and decide how much to invest abroad given their expectations about future exchange rates. The experiment allows students to practice calculating the returns to foreign investments, understand the benefits to skill in predicting future exchange rates, and observe the limitations to that skill. The experiment is ideal for undergraduate students in macroeconomics or international economics courses in a classroom that would allow students to separate into distinct groups. [ABSTRACT FROM AUTHOR] |
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| ISSN: | 08832323 |
| DOI: | 10.1080/08832323.2021.1895044 |
