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An investigation into the relevance of international portfolio diversification from a South African perspective

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.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uwc/oai:etd.uwc.ac.za:11394/7363
Date January 2020
CreatorsBuwembo, Mark
ContributorsAlbertus, Rene
PublisherUniversity of the Western Cape
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
RightsUniversity of the Western Cape

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