Country risk, country risk indices, and valuation of FDI : a real options approach
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- Discussion papers (FOR) 
Country risk and in particular political risk may constitute a large part of the total risk investors face when investing in emerging markets. It is not a straightforward task to quantify and include these types of risks in the evaluation and valuation of real investments. We suggest a method involving country risk indices. The approach is based on the real option approach for valuation of real investments.
PublisherNorwegian School of Economics and Business Administration. Department of Finance and Management Science