Date of Award

Spring 2018

Document Type

Honors Thesis



First Advisor

Dr. Mike Allgrunn

Second Advisor

Dr. Pavel Jeutang

Third Advisor

Dr. Mandie Weinandt


Financial Markets, Diversification, Global, Correlation, Foreign Exchange


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.



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