Abstract
It is well known from portfolio theory that pure domestically invested asset portfolios are usually sub-optimal. If for example a private household in France invests only in French equities it will have a lower return-to-risk ratio than compared to a world-wide investment. As this is true in general for all types of investors, countries and assets, a better diversification should improve the performance of investments.
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Reference
Brealey, R., I. Cooper and E. Kaplanis (1999), What Is the International Dimension of International Finance?European Finance Review3, 103–119.
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© 2003 Springer-Verlag Berlin Heidelberg
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Schröder, M. (2003). Benefits of Diversification and Integration for International Equity and Bond Portfolios. In: Cecchini, P., Heinemann, F., Jopp, M. (eds) The Incomplete European Market for Financial Services. ZEW Economic Studies, vol 19. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57364-4_8
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DOI: https://doi.org/10.1007/978-3-642-57364-4_8
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-0013-5
Online ISBN: 978-3-642-57364-4
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