Year of Graduation
The influence of exchange rate risks on the cost of capital in developing markets
This work tests the Fama-Frencha with addition of exchange rate risk premia. In this paper we analyzed the exposure to currency risk of russian companies, as well as tested various assumptions, which may explain the presence or absence of exposure. The main conclusion is that the extended model of Fama-French which includes currency risk demonstrates better results on the basis of statistical tests.