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 |
|---|---|
| Language: | English |
| Authors: | Scanlan, Mark |
| Source: | Journal of Education for Business. 2022 97(2):133-138. |
| Availability: | Routledge. Available from: Taylor & Francis, Ltd. 530 Walnut Street Suite 850, Philadelphia, PA 19106. Tel: 800-354-1420; Tel: 215-625-8900; Fax: 215-207-0050; Web site: http://www.tandf.co.uk/journals |
| Peer Reviewed: | Y |
| Page Count: | 6 |
| Publication Date: | 2022 |
| Document Type: | Journal Articles Reports - Descriptive |
| Education Level: | Higher Education Postsecondary Education |
| Descriptors: | Undergraduate Students, Economics Education, Class Activities, Educational Experiments, Macroeconomics, Instructional Design, Risk, Investment, International Trade, Educational Games, Monetary Systems, Group Activities |
| DOI: | 10.1080/08832323.2021.1895044 |
| ISSN: | 0883-2323 |
| 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. |
| Abstractor: | As Provided |
| Entry Date: | 2022 |
| Accession Number: | EJ1328327 |
| Database: | ERIC |
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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. |
|---|---|
| ISSN: | 0883-2323 |
| DOI: | 10.1080/08832323.2021.1895044 |
