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A review of recent developments in international portfolio selection

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Abstract

This review begins with a foundation for inspection of the potential gains from international diversification by citing the results of the seminal works in the area. From that point, the review examines recent ex-post studies, adaptation to currency risk, consideration of bond investment, the development of ex-ante strategies, and the consideration of market imperfections. The prevailing impression from this review is that international investment can potentially provide superior performance to solely domestic investment. However, it is a matter of developing the correct strategy to exploit the opportunities.

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Authors and Affiliations

  1. Department of Finance, School of Business, Indiana University, Bloomington, Indiana, U.S.A.

    Brian Hatch & Bruce G. Resnick

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  1. Brian Hatch
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  2. Bruce G. Resnick
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Hatch, B., Resnick, B.G. A review of recent developments in international portfolio selection. Open Econ Rev 4, 83–96 (1993). https://doi.org/10.1007/BF00999555

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