Investing in Emerging Stock Markets
| Autor: | Shmuel Hauser, Matiryahu Marcus, Uzi Yaari |
|---|---|
| Rok vydání: | 1994 |
| Předmět: |
Emerging stock markets
Economics and Econometrics Diversification (finance) Monetary economics General Business Management and Accounting Accounting Economics Developed market Low correlation Emerging markets Foreign exchange risk Hedge (finance) health care economics and organizations Finance Stock (geology) |
| Zdroj: | The Journal of Portfolio Management. 20:76-81 |
| ISSN: | 2168-8656 0095-4918 |
| DOI: | 10.3905/jpm.1994.76 |
| Popis: | Stock markets in emerging economies are often surrounded by a fast-pace real and monetary growth. The high returns typical of those markets continue to attract foreign investors who are looking to enhance the performance of their portfolios. A number of studies demonstrate the advantage of international diversification due to a comparatively low correlation between stock returns in developed and emerging markets, an advantage expressed in terms of risk-return tradeoff. In this study, we empirically examine the role of exchange rate risk in determining the benefits from international diversification. While a number of studies conclude that those benefits are enhanced by hedging the exchange rate risk, we find that such a hedge may decrease the gain from diversification between a developed market and a high-risk emerging one. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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