Global Asset Allocation: Risk and Return Trade-off on Emerging Stockmarkets

  • Mohamed Derrabi
  • Michel Leseure
Part of the Centre for the Study of Emerging Markets Series book series (CSEM)

Abstract

The allocational efficiency of financial markets is one of the important conditions for economic growth. The way financial resources are allocated determines the cost, the risk, the return and thus the added value created by investments. These are particularly important when considering emerging economies because of problems and barriers to capital accumulation and its allocation to the most promising activities. In developing countries, bank debt is the most preferred and sometimes the unique formal source for financing. The emergence of stock exchange markets has been restricted for several reasons: small size of the businesses, a lack of sufficient savings, and difficulties associated with the accumulation of capital due mainly to the lack of sufficient country-funds. As a result, the stock exchange markets have for a long time been neglected.

Keywords

Europe Covariance Income Turkey Sine 

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Copyright information

© Mohamed Derrabi and Michel Leseure 2005

Authors and Affiliations

  • Mohamed Derrabi
  • Michel Leseure

There are no affiliations available

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