haku: @indexterm EQUITY CAPITAL / yhteensä: 240
viite: 118 / 240
| Tekijä: | French, K. R. Poterba, J. M. |
| Otsikko: | Investor diversification and international equity markets |
| Lehti: | American Economic Review
1991 : MAY, VOL. 81:2, p.222-226 |
| Asiasana: | EQUITY CAPITAL INTERNATIONAL MARKETING INVESTMENTS DIVERSIFICATION PORTFOLIO INVESTMENT RATE OF RETURN |
| Kieli: | eng |
| Tiivistelmä: | Since the fortunes of different nations do not always move together, investors can diversify their portfolios by holding assets in several countries. In spite of this, most investors hold nearly all of their wealth in domestic assets. A simple model of investor preferences and behaviour is used 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. the lack of diversification appears to be the result of investor choices, rather than institutional constraints. The gains from diversification and the costs of incomplete diversification are examined. |
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