Economics, Econometrics and Finance
4 years ago

US Market Integration Reduces Risk for Emerging Market Investors.

˜The œinternational journal of business and finance research
Equity Market Integration And Diversification: Evidence From Emerging And Developed Countries
Hong Rim, Robert Setaputra

Paper Summary

The study looked at how the US stock market affects the portfolios of emerging markets in Asia, Europe, and South America. They found that adding the US market doesn't give extra diversification for emerging markets. However, including the US market can lower the risk in the portfolios of these emerging markets. This means that the US market can help reduce the overall risk for investors in emerging markets.

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