International Portfolio Diversification PDF Download

Author: Theodore Michael Johnson
Publisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 148

View

Book Description

Author: Amir Andrew Amadi
Publisher:
ISBN:
Category :
Languages : en
Pages : 226

View

Book Description

Author: Chaehee Shin
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

View

Book Description
Although the lack of international portfolio diversification has long interested the financial economics literature, the role of financial intermediaries in the market for diversified portfolios has rarely been studied. In this paper, I introduce a microeconomic aspect of under-diversification by examining a new data on U.S.-based mutual fund families' global diversification. I document the fund families' investments in global equity markets and explore features of supply and demand in the mutual fund market to explain their limited global diversification. Demand estimation confirms that consumers are not only sensitive to the fund families' portfolio characteristics such as global diversification, but also to the non-portfolio characteristics such as fund family age and size. On the supply side, the model of fund families' global investment decisions uses a revealed preference approach and shows small cross-border investment frictions can justify the fund families' observed limited global diversification. Other factors such as destination country's investor protection level and fund family's investment experience significantly affect the degree of diversification as well.

Author: Urban J. Jermann
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 40

View

Book Description
When marginal utility of consumption depends on leisure, investors will take this into account when allocating their wealth among different assets. This paper presents a multi-country general equilibrium model driven by productivity shocks, where labor-leisure and consumption are chosen endogenously. We use this framework to study the effect of leisure for optimal international diversification. We find that in the symmetric case the model's ability to help explain home-bias depends crucially on the level of substitutability between consumption and leisure.

Author: Olasupo Olusi
Publisher:
ISBN:
Category :
Languages : en
Pages : 38

View

Book Description
This paper evaluates the relevance of an international equity diversification strategy to a home-biased German investor by comparing the payoffs from such a strategy with those from domestic diversification. Following the removal of an important investment barrier - exchange rate risks in eurozone markets, we assess whether the investor's portfolio performance improves significantly by diversifying across euro area equity markets, rather than in Germany only. The results reveal that the investor will benefit significantly from adopting an international diversification strategy. However, these benefits are exhausted by diversifying within the eurozone. Payoffs from equity acquisitions across the rest of the world are statistically and economically insignificant.

Author: Francois-Serge Lhabitant
Publisher: Elsevier
ISBN: 0081017863
Category : Mathematics
Languages : en
Pages : 276

View

Book Description
Portfolio Diversification provides an update on the practice of combining several risky investments in a portfolio with the goal of reducing the portfolio's overall risk. In this book, readers will find a comprehensive introduction and analysis of various dimensions of portfolio diversification (assets, maturities, industries, countries, etc.), along with time diversification strategies (long term vs. short term diversification) and diversification using other risk measures than variance. Several tools to quantify and implement optimal diversification are discussed and illustrated. Focuses on portfolio diversification across all its dimensions Includes recent empirical material that was created and developed specifically for this book Provides several tools to quantify and implement optimal diversification

Author: A. Brooks-Senftleben
Publisher:
ISBN:
Category : Investments, Foreign
Languages : en
Pages : 56

View

Book Description

Author: Sohnke M. Bartram and Gunter Dufey
Publisher:
ISBN:
Category :
Languages : en
Pages : 123

View

Book Description

Author: Faranak Roshani Zafaranloo
Publisher:
ISBN:
Category :
Languages : en
Pages :

View

Book Description

Author: Charles Guez
Publisher:
ISBN:
Category : Investments, Foreign
Languages : en
Pages : 318

View

Book Description