How does the lack of perfect correlation of economic returns between international financial markets affect the risk-return

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How does the lack of perfect correlation of economic returns between international financial markets affect the risk-return opportunities for FIs holding multicurrency assets and liabilities? Refer to Table 13-6. Which country pairings seem to have the highest correlation of stock returns before and during the financial crisis?
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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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