tag:blogger.com,1999:blog-8152901575140311047.post6923822012881766278..comments2024-03-28T12:49:46.624-04:00Comments on Musings on Markets: Decoding Currency Risk: Pictures of Global Risk - Part IVAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8152901575140311047.post-40082999727251969622015-10-07T13:53:52.908-04:002015-10-07T13:53:52.908-04:00That you for this post !
Why did you not include ...That you for this post ! <br />Why did you not include Argentina in your calculation ?<br /><br />maria<br />maiahttps://www.blogger.com/profile/07880638412251999447noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-81965490977208107062015-09-01T22:15:00.281-04:002015-09-01T22:15:00.281-04:00Thanks Mister for this post
Actually, I think th...Thanks Mister for this post <br /><br />Actually, I think that there is no inconsistency when we use an ERP in USD terms along with a risk free rate in Brazilian real terms since the the BR risk free rate can be written as follows : Rf BR = Rf USD + expected inflation<br /><br />In a nutshell, the ERP and the risk free rate are both in USD the only difference lies in the expected inflationzargui hamzahttps://www.blogger.com/profile/02543790223617623189noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-56586427431719268602015-08-04T12:02:57.501-04:002015-08-04T12:02:57.501-04:00Since the risk free rate serves as a proxy for gro...Since the risk free rate serves as a proxy for growth in the terminal value, would we need to adjust a negative risk free rate like Japan has?<br />Use 0?gautamlnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-83253281539426233722015-08-01T00:23:16.088-04:002015-08-01T00:23:16.088-04:00Brazilian Real has become undervalued because the ...Brazilian Real has become undervalued because the economy is going bad. Crisis hit heavily Brazil's currency. Inflation rates are even higher because public revenue didn't grow as the government expected withal public spending are uncontrolled. The last revenue was just R$ 1,1 trillion while debt is about R$ 2,5 trillion. Consequently, government has raised taxes on electricity, foods, fuel, water, etc. Price of goods and services has raised about 72% in six months and yet that wasn't enough to increase revenue. This measures caused a rising on inflation taxes which undervalue currency and impact badly on companies debts. PIB expectation was decreased from 1,5% to 1,2% because they are failing to deal with the financial situation of the country. The real risks on Brazil are bad economic policies.Isabelnoreply@blogger.com