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Preface | |
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Acknowledgments | |
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The International Financial Environment | |
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An Introduction to Multinational Finance | |
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Executive Summary | |
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The Goals of the Multinational Corporation | |
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The Challenges of Multinational Operations | |
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The Opportunities of Multinational Operations | |
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Financial Management of the Multinational Corporation | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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World Trade and the International Monetary System | |
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Executive Summary | |
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Integration of the World's Markets | |
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Balance-of-Payments Statistics | |
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Exchange Rate Systems | |
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A Brief History of the International Monetary System | |
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The Global Financial Crisis of 2008 | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Foreign Exchange and Eurocurrency Markets | |
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Executive Summary | |
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Characteristics of Financial Markets | |
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The Eurocurrency Market | |
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The Foreign Exchange Market | |
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Foreign Exchange Rates and Quotations | |
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The Empirical Behavior of Exchange Rates | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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The International Parity Conditions and Their Consequences | |
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Executive Summary | |
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The Law of One Price | |
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Exchange Rate Equilibrium | |
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Interest Rate Parity and Covered Interest Arbitrage | |
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Less Reliable International Parity Conditions | |
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The Real Exchange Rate | |
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Exchange Rate Forecasting | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Appendix 4A: Continuous Compounding | |
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Problems | |
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Derivative Securities for Financial Risk Management | |
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Currency Futures and Futures Markets | |
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Executive Summary | |
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Financial Futures Exchanges | |
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The Operation of Futures Markets | |
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Futures Contracts | |
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Forward versus Futures Market Hedges | |
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Futures Hedges Using Cross-Exchange Rates | |
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Hedging with Currency Futures | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Currency Options and Options Markets | |
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Executive Summary | |
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What Is an Option? | |
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Option Payoff Profiles | |
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Currency Option Values Prior to Expiration | |
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Hedging with Currency Options | |
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Exchange Rate Volatility Revisited (Advanced) | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Appendix 6A: Currency Option Valuation | |
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Key Terms | |
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Problems | |
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Suggested Readings | |
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Currency Swaps and Swaps Markets | |
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Executive Summary | |
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The Growth of the Swaps Market | |
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Swaps as Portfolios of Forward Contracts | |
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Currency Swaps | |
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Interest Rate Swaps | |
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Other Types of Swaps | |
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Hedging the Swap Bank's Exposure to Financial Price Risk | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Managing the Risks of Multinational Operations | |
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Multinational Treasury Management | |
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Executive Summary | |
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Determining Financial Goals and Strategies | |
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Managing the Corporation's International Trade | |
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Financing the Corporation's International Trade | |
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Managing the Multinational Corporation's Cash Flows | |
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Currency Risk Management in the Multinational Corporation | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Appendix 8A: The Rationale for Hedging Currency Risk | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Managing Transaction Exposure to Currency Risk | |
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Executive Summary | |
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An Example of Transaction Exposure to Currency Risk | |
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Managing Transaction Exposures Internally | |
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Managing Transaction Exposure in Financial Markets | |
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Treasury Management in Practice | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Managing Operating Exposure to Currency Risk | |
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Executive Summary | |
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Operating Exposures to Currency Risk | |
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The Exposure of Shareholders' Equity | |
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Managing Operating Exposure in the Financial Markets | |
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Managing Operating Exposure through Operations | |
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Pricing Strategy and the Firm's Competitive Environment | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Managing Translation Exposure and Accounting for Financial Transactions | |
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Executive Summary | |
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The Current Rate Method of Financial Accounting Standard No. 52 | |
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Corporate Hedging of Translation Exposure | |
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Accounting for Financial Market Transactions | |
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Accounting, Disclosure, and Corporate Hedging Activities | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Valuation and the Structure of Multinational Operations | |
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Foreign Market Entry and Country Risk Management | |
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Executive Summary | |
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Strategic Entry into International Markets | |
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Country Risk Assessment | |
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Strategies for Managing Country Risk | |
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Protecting the Multinational's Competitive Advantages | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Multinational Capital Budgeting | |
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Executive Summary | |
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The Algebra of Multinational Capital Budgeting | |
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An Example: Wendy's Restaurant in Neverland | |
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International Parity Disequilibria | |
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Special Circumstances in Cross-Border Investments | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Multinational Capital Structure and Cost of Capital | |
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Executive Summary | |
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Capital Structure and the Cost of Capital | |
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Project Valuation and the Cost of Capital | |
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The Cost of Capital on Multinational Operations | |
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Sources of Funds for Multinational Operations | |
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The International Evidence on Capital Structure | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Taxes and Multinational Corporate Strategy | |
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Executive Summary | |
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The Objectives of National Tax Policy | |
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Types of Taxation | |
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U.S. Taxation of Foreign-Source Income | |
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Taxes and Organizational Form | |
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Transfer Pricing and Tax Planning | |
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Taxes and the Location of Foreign Assets and Liabilities | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Real Options and Cross-Border Investment Strategy | |
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Executive Summary | |
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Real Options and the Theory and Practice of Investment | |
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Market Entry as a Simple Real Option | |
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Uncertainty and the Value of the Option to Invest | |
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Market Entry as a Compound Real Option | |
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The Real Option Approach as a Complement to Net Present Value | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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Corporate Governance and the International Market for Corporate Control | |
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Executive Summary | |
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Corporate Governance | |
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The International Market for Corporate Control | |
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The International Evidence on Mergers and Acquisitions | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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International Portfolio Investment and Asset Pricing | |
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International Capital Markets | |
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Executive Summary | |
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Domestic and International Bond Markets | |
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Domestic and International Stock Markets | |
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International Investment Vehicles | |
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Share Prices in International Markets | |
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Asset Allocation Policy and Investment Style | |
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Cross-Border Financial Statement Analysis | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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International Portfolio Diversification | |
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Executive Summary | |
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The Algebra of Portfolio Diversification | |
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Returns on Foreign Investments | |
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The Benefits of International Portfolio Diversification | |
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Home Bias | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |
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Suggested Readings | |
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International Asset Pricing | |
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Executive Summary | |
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The International Capital Asset Pricing Model | |
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Factor Models and Arbitrage Pricing Theory | |
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Factor Models for International Assets | |
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Momentum Strategies | |
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Contemporary Asset Pricing Models | |
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Summary | |
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Key Terms | |
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Conceptual Questions | |
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Problems | |