Date of Award
Spring 2018
Document Type
Honors Thesis
Department/Major
Economics
First Advisor
Dr. Mike Allgrunn
Second Advisor
Dr. Pavel Jeutang
Third Advisor
Dr. Mandie Weinandt
Keywords
Financial Markets, Diversification, Global, Correlation, Foreign Exchange
Abstract
This thesis focuses on several aspects of international equity investing. The research shows foreign exchange risk is significant in most countries, especially in times of higher volatility, and should be an important consideration for investors. The correlation across international markets has seen a steady increase over time, with peak correlation during the Great Recession. The increased correlation makes investors look beyond developed markets, shifting focus to smaller emerging markets. Lastly, the prediction of daily performance proved to be a difficult task, especially for smaller markets.
Recommended Citation
Kameník, Tomáš, "International Diversification and Performance Prediction in Equity Investing" (2018). Honors Thesis. 13.
https://red.library.usd.edu/honors-thesis/13