... converting to the foreign currency, lending at the foreign interest rate, and converting the proceeds back to dollars. The stock and bond indices are total market returns from Datastream, the interest ... excess returns for borrowing in US dollars, converting to the domestic currency, lending at the domestic interest rate, and converting the proceed back to dollars. The stock and bond returns are ... B3B7D 3>>AIEWORKING PAPER SERIESNO 883 / MARCH 2008 ASSESSING THE BENEFITS OF INTERNATIONALPORTFOLIODIVERSIFIC ATION IN BONDS AND STOCKSby Rober to A. De Santis and Lucio SarnoFormat:...