what is priced risk research, currency, relation, specific, country

parott

in relation to icapm.

it says "country specific risk should not be priced" this is from a research report on currency risk is "priced"

xilige

didn't check the glossary: risk for which investors demand compensation to take.

zephyranalyst

Country specific risk is diversifiable and should not be included in discount rates. Currency risks are priced (included in valuation) by adjusting financials to real levels or adjusted nominal levels using inflation expectations....

Prob not helpful, but i just got rocked on a question on that so it stood out in my head.