JOURNAL ARTICLE
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Performance of International Portfolio Diversification Strategies: The Viewpoint of German and Hungarian Investors
Bugár, Gyöngyi | Maurer, Raimond
Credit and Capital Markets – Kredit und Kapital, Vol. 32 (1999), Iss. 4 : pp. 581–609
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Gyöngyi Bugár, Pécs/Ungarn
Raimond Maurer, Mannheim
References
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Abstract
In this paper, we study the benefits derived from international diversification of stock portfolios from the German as well as the Hungarian perspective. Seen from an ex post perspective the benefits for Hungarian investors from internationally diversified portfolios accrue in terms of reduction in risk while for German investors the benefits accrue also in terms of higher expected returns. By examining the performance of several ex ante strategies the paper also gives evidence of the benefits of international diversification for both countries. (JEL G11, G15)