Abstract: Emerging equity and fixed income markets (EM) have generally been open to foreign investors for more than two decades now, and much has been learned about their risk-and-return properties during that time. As EM are now more investable than ever, increased integration may have reduced opportunities for investors searching for higher yields, as they look for high expected returns from assets that can be purchased at prices cheaper than comparable assets in developed countries. Today, the question is whether the empirical evidence would still suggest that there is a significant benefit to including EM assets in a globally diversified portfolio. Also, taking into consideration all the relevant risk characteristics, do emerging markets have more downside risk than developed markets.
Publication Year: 2016
Publication Date: 2016-01-01
Language: en
Type: article
Indexed In: ['crossref']
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