Identifying Potential Benefits of International Portfolio Diversification: Sub-Saharan Economics
Within the framework of Markowitz-Tobin portfolio theory, we empirically investigate potential benefits to a US investor from diversifying into equity markets in Sub-Saharan Africa. We infer, based on the state of these economies for the period studied, that potential gains accrue to a US investor from such diversification. For the optimal diversification strategy combination, portfolio equilibrium involves positive portfolio weights in all four countries; an outcome that is unambiguously conductive to regional economic growth.
Year of publication: |
1992
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Authors: | Ahmed, Ehsan ; Ayogu, Melvin D. |
Published in: |
Journal of African Development. - African Finance and Economics Association - AFEA. - Vol. 1.1992, 1
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Publisher: |
African Finance and Economics Association - AFEA |
Saved in:
freely available
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