The Behavior Of Emerging Market Returns

The Behavior Of Emerging Market Returns Currency devaluations, failed economic plans, regulatory changes, coups and other national financial "shocks" are notoriously knockout to predict and may have disasterous consequences for global portfolios. Indeed, these characteristics often present the difference in investment in the capital merchandises of create and emerging economies. Research on emerging marts has suggested three market features: high average returns, high volatility and low correlations two across the emerging markets and with developed markets.

Indeed, the lesson of volat ility was learned the difficult way by many investors in December 1994 when the Mexican stock market began a fall that would reduce frankness value in U.S. dollars by 80% over the accustomed three months. But, we have learned far more approximately these fledgling markets. First, we need to be careful in rendition the average performance of these markets. Harvey (1995) points out that the Internatio...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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