In this chapter we show that, as the world becomes increasingly integrated, the benefits of global diversification still remain positive and economically significant over time. Both regression analysis and explanatory power tests show that international integration, measured by adjusted from a...

Compared to conventional mutual funds, socially responsible mutual funds outperform during periods of market crisis. This dampening of downside risk comes at the cost of under performing during non-crisis periods. Investors with Prospect Theory utility functions would value the skewness of these...