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.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Reference
Brealey, R., I. Cooper and E. Kaplanis (1999), What Is the International Dimension of International Finance?European Finance Review3, 103–119.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2003 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
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
Download citation
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
eBook Packages: Springer Book Archive