Macroeconomic factors affecting international equity returns include

Question

Quizplus · Accepted Answer

All of the mentioned factors - exchange rate changes, interest rate differentials, and changes in inflationary expectations can affect international equity returns. Exchange rate changes can impact the value of overseas investments, interest rate differentials can influence investment flows and inflationary expectations can affect the pricing power of companies, leading to changes in equity returns. Therefore, all options (A, B, and C) are correct.

Macroeconomic Factors Affecting International Equity Returns Include