Macroeconomic factors affecting international equity returns include

Question

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All of the options (exchange rate changes, interest rate differentials, and changes in inflationary expectations) are macroeconomic factors that can affect international equity returns. Exchange rate changes can impact the returns of foreign investments when converted back into the investor's home currency. Interest rate differentials can impact equity returns as changes in interest rates can affect the cost of financing for businesses and the investment decisions of investors. Changes in inflationary expectations can also impact equity returns as higher inflation expectations can lead to higher interest rates, which can negatively affect equity returns.

Macroeconomic Factors Affecting International Equity Returns Include