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Suppose I do a typical backtest of the global ex-U.S. stock market asset class, or an unhedged ETF tracking that asset class, such as VXUS. Will the standard deviation and visual chart include the currency risk?
wouldn't this be reflected in the rate of inflation? if the dollar weakens, inflation should rise, and that is reflected in PV
Everything in PV is denominated in USD, so yes you are seeing the full effect of foreign currency risk.
No, it has nothing to do with inflation adjusted. Inflation adjusted applies an extra adjustment on top of all the numbers.