Investments in CEE Capital Markets: Benefits from Diversification and Optimal Portfolios

  • Michael Schröder
Chapter

Abstract

The integration of CEE countries into the European Union will accelerate the integration of CEE capital markets into the international and European capital markets. The major economic factors behind this integration of capital markets are improved possibilities for risk diversification and for future returns which the CEE capital markets could offer to international investors. The future integration into the European Union will probably cause an improvement of the macroeconomic environment. The most important macroeconomic consequences relevant for financial markets will be lower and stable inflation, decreasing interest rates, consolidation of public debt, higher productivity and more stable exchange rates. Additionally, existing barriers to capital flows from abroad will be reduced or even fully abolished and the risk of adverse institutional and political changes will diminish as a consequence of economic and political reforms.

Keywords

Stock Market Capital Market Excess Return Equity Market Efficient Frontier 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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Copyright information

© Springer-Verlag Berlin Heidelberg 2001

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  • Michael Schröder

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