In Schweser Sometimes its Return + Currency return + (return * currency return) And sometimes its Return +Currency return + Currency return ( 1+ Return) What am I not seeing?
not sue… i know it as retun + currency return + return*currency Return and that’s the formula i’ll be using come exam day.
Or you can just do 1+return * 1+currency return the return*currency return is the compounding effect that you get from geometrically linking the returns together vs just adding them, hence thats why this is adding to the simple additive formula.
Thanks Bigwilly that seems to work for everything
I know the whole currency thing gets messy with the hedge ratios and such, if I recall correctly: Rh= Rd + -hFr Where Fr = Currency Return, h = hedge ratio Rd = Raf + s(1+Raf) where Raf = return on Asset in LC, s = % change in spot rate
if you are going to use 1+ form it would be (1 + return) * (1 + currency return) - 1 otherwise, its return + currency return + (return * currency return) or return + curency return * (1 + return) also currency return should be using direct quotes (i.e., dollars per euro from US perspective)
Yes sorry I forgot the -1 
And yes Currency should be DC/FC