Download or read book Investor Benefits from International Diversification written by Mikael Gustafsson and published by . This book was released on 1985 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Benefits of International Diversification for a Swiss Investor written by Simon E. Öhri and published by . This book was released on 2010 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Investor Benefits from International Portfolio Diversification written by Sheldon Novack and published by . This book was released on 1973 with total page 338 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Multinationals and the Gains from International Diversification written by Patrick F. Rowland and published by . This book was released on 1998 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: One possible explanation for home bias is that investors may obtain indirect international diversification benefits by investing in multinational firms rather than by investing directly in foreign markets. This paper employs mean-variance spanning tests to examine the diversification potential of multinational firms and foreign market indices for investors domiciled in Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. We find that in most countries and most time periods, the portfolio of domestic stocks spans the risk and return opportunities of a portfolio that includes domestic and multinational stocks. However, there is weak evidence that U.S. multinationals provided global diversification benefits in the full 1984-92 sample and in the post-1987 subsample. We also find that the addition of foreign market indices to a domestic portfolio - inclusive of multinationals - provides diversification benefits. The economic importance of the shift of the portfolio frontier - measured as the utility gain from diversification - varies considerably from market to market and often reflects the benefits of large short positions in certain markets.
Download or read book Diversification written by Mark Armour and published by . This book was released on 1992 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Benefits of International Diversification written by Lorne N. Switzer and published by . This book was released on 2015 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the benefits of international diversification for US investors, while accounting for market development, corporate governance, market cap effects, and structural change across countries over period August 1996-July 2013. Improved risk adjusted returns are obtained from a diversified portfolio consisting of a mix of developed and emerging countries. Additionally, we find that diversification benefits are not significant for most of the small-cap foreign assets when an investor already holds position in corresponding countries large-cap assets. Diversification benefits based on the governance effectiveness of a country's companies are not ubiquitous. We find that economically significant improvements in risk-return performance can be attained by adding large caps of developed countries with high and low overall Governance Metrics International (GMI) ratings and large and small caps of emerging countries with low overall GMI ratings to the investment universe containing the assets of common law developed countries. However, diversification benefits are economically significant only for large and small caps of low GMI emerging countries when short selling is not allowed.
Download or read book Shareholder Benefits of International Diversification written by Sean C. Rothermel and published by . This book was released on 2014 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Examination of the Benefits of International Diversification Available to the Irish Investor written by Cara Julia O'Sullivan and published by . This book was released on 2002 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Diversification Opportunities for Real Estate Investment Portfolios written by Onousa Boontanorm and published by . This book was released on 2010 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis explores the topic of diversification opportunities in international real estate, with focus on private real estate markets in developed countries. In examining the characteristics of returns and interrelatedness between international real estate, stocks and bonds markets from the time period spanning 2000 to 2009, we find that 2008 was the only year within the past decade in which several countries saw synchronized negative returns on a calendar year basis in the stocks and real estate markets, and even so the synchronized negative returns was only experienced by half of the countries within the 10-country opportunity set. The amplitude of the peak to trough drop in the cumulative value of the assets was small in real estate on average relative to that of stocks. These findings suggest that investors' should benefit from holding international real estate within their portfolios, even in an extreme down market. Modern portfolio theory is used to analyze and compare ex-ante diversification opportunities in international real estate, stocks and bonds and domestic diversification opportunities for the three asset classes from the perspectives of U.S. and European investors. We project expected returns for each of the markets and used historical risks (volatility) from the 2000-2009 period as estimates for volatility. When returns are calculated in local currencies, international diversification in the real estate portfolio (diversified within a 10-country opportunity set) should help U.S. investors substantially improve their portfolio risk-return efficiency relative to domestic diversification (within a 6-metropolitan area opportunity set), as the markets within the U.S. domestic opportunity set provide unattractive risk-return efficiency and their movements are highly correlated. By contrast, European investors will benefit less from the same international diversification strategy relative to domestic diversification (within 5 Eurozone countries) as several Eurozone markets are able to provide considerable risk-return efficiency and low correlations can be found in some pairs of markets. Applying home bias and limits on exposure to any single country i.e. country caps to the portfolio allocation helps to balance the allocation weights for the investor's portfolio but also significantly limits the investor's ability to take advantage of diversification opportunities provided by the international markets. When returns are calculated in the investors' domestic currencies, additional currency risk increases the portfolio volatility without providing additional expected return, reducing diversification benefits of international real estate. Even so, international diversification potential to U.S. investors should still be considerable, while that to European investors' should be minimal.
Download or read book The Benefits from International Diversification for Nordic Investors written by Eva Liljeblom and published by . This book was released on 1995 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Investor Diversification and International Equity Markets written by Kenneth R. French and published by . This book was released on 1991 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: The benefits of international diversification have been recognized for decades. In spite of this, most investors hold nearly all of their wealth in domestic assets. In this paper, we construct new estimates of the international equity portfolio holdings of investors in the U.S., Japan, and Britain. More than 98% of the equity portfolio of Japanese investors is held domestically; the analogous percentages are 94% for the U.S., and 82% for Britain. We use a simple model of investor preferences and behavior to show that current portfolio patterns imply that investors in each nation expect returns in their domestic equity market to be several hundred basis points higher than returns in other markets. This lack of diversification appears to be the result of investor choices, rather than institutional constraints.
Download or read book Multinationals and the Gains from International Diversification written by Patrick F. Rowland and published by . This book was released on 2002 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: One possible explanation for home bias is that investors may obtain indirect international diversification benefits by investing in multinational firms rather than by investing directly in foreign markets. This paper employs mean-variance spanning tests to examine the diversification potential of multinational firms and foreign market indices for investors domiciled in Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. We find that in most countries and most time periods, the portfolio of domestic stocks spans the risk and return opportunities of a portfolio that includes domestic and multinational stocks. However, there is weak evidence that U.S. multinationals provided global diversification benefits in the full 1984-92 sample and in the post-1987 subsample. We also find that the addition of foreign market indices to a domestic portfolio - inclusive of multinationals - provides diversification benefits. The economic importance of the shift of the portfolio frontier - measured as the utility gain from diversification - varies considerably from market to market and often reflects the benefits of large short positions in certain markets.
Download or read book Diversification Benefits of Emerging Markets Subject to Portfolio Constraints written by Kai Li and published by . This book was released on 2009 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the international diversification benefits subject to portfolio constraints -- in particular, constraints on short selling. We show that the international diversification benefits remain substantial for U.S. equity investors when they are prohibited from short selling in emerging markets. This result is robust to investment restrictions on non-native individuals. It is also unaffected by the fact that the U.S. equity index portfolio is not on the efficient frontier spanned by U.S. securities. The integration of world equity markets reduces, but does not eliminate, the diversification benefits of investing in emerging markets subject to short-sale constraints.
Download or read book Can Investors Benefit from International Diversification Without Trading Abroad written by GeHong Nancy Gao and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Benefits of International Portfolio Diversification written by Minji Yoo and published by . This book was released on 2006 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Diversification Benefits with Foreign Exchange Investment Styles written by Tim-Alexander Kroencke and published by . This book was released on 2011 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Diversification of Investment Portfolios written by Cheol S. Eun and published by . This book was released on 1991 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
