Magister Commercii - MCom / Diversification is one of the more familiar concepts in finance because of its ability
to curtail risk towards investors. However, for diversification to be efficient, the
assets combined should have inversely related price movements. In the same light,
previous research done on international portfolio diversification has consistently
found that having investments diversified across different global markets that have
low to medium correlations helps to get as close to an optimal portfolio as possible.
However, previous research also indicates that both global financial integration and
exogenous shocks increase correlations among international markets, hence
negating the benefits of international portfolio diversification to an extent.
Therefore, with global integration on the rise, coupled with economic and political
instability in some BRICS nations, the research examines these factors and gauges
the current viability of international portfolio diversification from the perspective
of a South African investor.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uwc/oai:etd.uwc.ac.za:11394/7363 |
| Date | January 2020 |
| Creators | Buwembo, Mark |
| Contributors | Albertus, Rene |
| Publisher | University of the Western Cape |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Rights | University of the Western Cape |
Page generated in 0.0021 seconds