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INTERNATIONAL DIVERSIFICATION AND THE EMERGING MARKETS

Year 1995, , 35 - 42, 10.01.1995
https://doi.org/10.14783/maruoneri.706217

Abstract

The models o f portfolio selection developed by Harıy Markowitz and James Tobin
provide normative rules for the diversification
of risky assets. These models have been extended and empirically tested after their first
presentation; later, intemational diversification
has been added to them. Both institutional and
individual investors are increasingly attempting
to diversify risk by spreading their portfolios
across different national stock markets. This
article reviews the argument for intemational
investment, discusses the risk reduction effect
of correlations between securities and concludes that emerging markets have an important role to play for asset aîlocation.

References

  • Adleı, Michael and Dumas, Bemard, (1983), “International Portfolio choice and Corporation Finance: A, synyhesis”, The Journal o f Finance,June, Vol XXXVIII No: 3. pp.925-984.
  • Bailey, Warres and Stulz M.Rene, (1990), “Benefist of International diveısification: The case of Pasific Basin Stock Markets.” Tfee Journal o f Portfolio managernent, Summer, pp.57-61.
  • Drummen, Martin and Zimmerman, Heinz, (1976), “The structure o f Europen stock retums”, Financial Analyst Journal, Jan/Feb, Vol 48 No: 4. pp. 15-26.
  • Errunza, VB. and Losq E., (1987), “How risky are emerging markets? Myths and perceptions versus theoıy and evidence” Journal o f PortfoliosManagement, Fail pp.62-67.
  • Grubel, Herbert G., (1976), “Intemationally Diversifeld Portfolios: Welfare Gains and Capital Flows”, American EconomicReview, December, Vol LVIII Number l,p p . 1299-1314.
  • Hillard, J.(1979), “The relationship between equity indices on world exchanges, Journal o f Finance, Vol. 34, pp. 103-114.
  • Hunter, John E. and Coggin T.Daniel, (1990), “An Analysis o f the Diversification Benefit from International Equity Investment”, The Journal o f Portfolio Management, Fail, Vol 17 No: 1. pp.33-36.
  • IFC, Emerging stock Markets Factbook, 1994.
  • Lessard Donald R., (1976), “World, Country and Industıy Relationships in Equity Retums”, Financial Analysts Journal, Januaıy-February ,Vol 32 No: 1. pp.32-38.
  • Levy, Heim and Samat Marshall, 1970, "International diveısification of kıvesment Portfolios''American Economic Revievv, September ,Vol L X . pp.668-675.
  • McDonald, John G.,V, 1973,”French Mutual Fund Performance: Evaluation of IntemationallyDiversified Portfolios, The Journal o f Finance, December, Vol 28 No:5 pp.l 161-1180.
  • Roll, R.(1989), “The intemational crash of 1987. In R.Kamphuis, R.Kamendi and J. Watson(eds), Black Monday and the Ficture o f Financial Markets, Homewood, IL.Imin, pp.35-70.
  • Solnik, H.Bruno, 1974, ”Why not diversify Intematilly Rather than Domestically”, Financial Analysts Journal, July-August, Vol 30 N o:4, pp.48-54.
  • ________________ _ , 1989, International Investments Addison-Wesley Publishing Company Inc .
  • Wilcox, Jorrod W., 1992, “Global Investing in Emerging Markets”, Financial Analysts Journal, Febmaıy, Vol 48 No: 1 pp. 15-19.
Year 1995, , 35 - 42, 10.01.1995
https://doi.org/10.14783/maruoneri.706217

Abstract

References

  • Adleı, Michael and Dumas, Bemard, (1983), “International Portfolio choice and Corporation Finance: A, synyhesis”, The Journal o f Finance,June, Vol XXXVIII No: 3. pp.925-984.
  • Bailey, Warres and Stulz M.Rene, (1990), “Benefist of International diveısification: The case of Pasific Basin Stock Markets.” Tfee Journal o f Portfolio managernent, Summer, pp.57-61.
  • Drummen, Martin and Zimmerman, Heinz, (1976), “The structure o f Europen stock retums”, Financial Analyst Journal, Jan/Feb, Vol 48 No: 4. pp. 15-26.
  • Errunza, VB. and Losq E., (1987), “How risky are emerging markets? Myths and perceptions versus theoıy and evidence” Journal o f PortfoliosManagement, Fail pp.62-67.
  • Grubel, Herbert G., (1976), “Intemationally Diversifeld Portfolios: Welfare Gains and Capital Flows”, American EconomicReview, December, Vol LVIII Number l,p p . 1299-1314.
  • Hillard, J.(1979), “The relationship between equity indices on world exchanges, Journal o f Finance, Vol. 34, pp. 103-114.
  • Hunter, John E. and Coggin T.Daniel, (1990), “An Analysis o f the Diversification Benefit from International Equity Investment”, The Journal o f Portfolio Management, Fail, Vol 17 No: 1. pp.33-36.
  • IFC, Emerging stock Markets Factbook, 1994.
  • Lessard Donald R., (1976), “World, Country and Industıy Relationships in Equity Retums”, Financial Analysts Journal, Januaıy-February ,Vol 32 No: 1. pp.32-38.
  • Levy, Heim and Samat Marshall, 1970, "International diveısification of kıvesment Portfolios''American Economic Revievv, September ,Vol L X . pp.668-675.
  • McDonald, John G.,V, 1973,”French Mutual Fund Performance: Evaluation of IntemationallyDiversified Portfolios, The Journal o f Finance, December, Vol 28 No:5 pp.l 161-1180.
  • Roll, R.(1989), “The intemational crash of 1987. In R.Kamphuis, R.Kamendi and J. Watson(eds), Black Monday and the Ficture o f Financial Markets, Homewood, IL.Imin, pp.35-70.
  • Solnik, H.Bruno, 1974, ”Why not diversify Intematilly Rather than Domestically”, Financial Analysts Journal, July-August, Vol 30 N o:4, pp.48-54.
  • ________________ _ , 1989, International Investments Addison-Wesley Publishing Company Inc .
  • Wilcox, Jorrod W., 1992, “Global Investing in Emerging Markets”, Financial Analysts Journal, Febmaıy, Vol 48 No: 1 pp. 15-19.
There are 15 citations in total.

Details

Primary Language English
Journal Section Eski Sayılar
Authors

Gürel Konuralp This is me

Publication Date January 10, 1995
Published in Issue Year 1995

Cite

APA Konuralp, G. (1995). INTERNATIONAL DIVERSIFICATION AND THE EMERGING MARKETS. Öneri Dergisi, 1(2), 35-42. https://doi.org/10.14783/maruoneri.706217

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