search query: @indexterm Foreign investment / total: 1949
reference: 95 / 1949
| Author: | Goetzmann, W.N. Ukhov, A.D. |
| Title: | British investment overseas 1870-1913: a modern portfolio theory approach |
| Journal: | Review of finance
2006 : VOL. 10:2, p. 261-300 |
| Index terms: | economic history foreign investment investment United Kingdom |
| Language: | eng |
| Abstract: | This article uses a mean-variance approach to address the classic puzzle of British capital export in the 19th century. The analysis shows that foreign securities listed in London offered significant diversification benefits to British investors. In simple terms, international diversification reduced risk. Conservative estimates of the optimal investment portfolio for a domestic investor suggest that the balance between foreign and domestic security offerings on the London Exchange was close to what classic equilibrium models of asset prices would suggest. |
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