EMERGING MARKETS: WHERE IS THE BENEFIT OF DIVERSIFICA TION?

A number ofstudies provide evidence that diversifying into emerging equity markets provides benefits to portfolio investors. Our findi,ngs, however, document that such benefits are not present for all emerging markets across time. We show that adding emerging market equities to the reference U S por...

Full description

Saved in:
Bibliographic Details
Published in:Global business and finance review 2003, 8(2), , pp.13-22
Main Authors: Metghalchi, Massoud, Garza-Gomez, Xavier, Yung-Ho, Chang
Format: Article
Language:English
Subjects:
Emerging markets
Portfolio performance
경영학
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:A number ofstudies provide evidence that diversifying into emerging equity markets provides benefits to portfolio investors. Our findi,ngs, however, document that such benefits are not present for all emerging markets across time. We show that adding emerging market equities to the reference U S portfolio in one subperiod slightly improves the portfolio performance, but it worsens it in other subperiods. This study suggests that different time frames are likely to yield different outcome when diversifying into emerging markets
ISSN:1088-6931
2384-1648