Globalization's Impact on the Effectiveness of Diversificaiton
- Author
- Deebel, Kathryn
- Published
- [University Park, Pennsylvania] : Pennsylvania State University, 2016.
- Physical Description
- 1 electronic document
- Additional Creators
- Gattis, Louis and Schreyer Honors College
Access Online
- honors.libraries.psu.edu , Connect to this object online.
- Restrictions on Access
- Open Access.
- Summary
- Financial experts praise diversification for its benefits in risk reduction. However, with the introduction of modern technology, the world, its countries, companies, and economies are more interrelated and connected then ever. When nations such as Greece, Italy, or China experience periods of economic or political distress, investors begin to panic worldwide. In fact, from 2000 to 2015 the world has experienced significant changes in several different market areas, and within the economies in certain geographical areas. Therefore, it is of paramount importance to revisit the benefits of diversification through correlations, and what happens to the standard deviations of a portfolio, all else held constant. This paper attempts to answer if globalization, higher correlations, and greater market integration from the years 2000-2015 are occurring, and if these changes have an impact on the effectiveness of diversification for the average American investing internationally.
- Other Subject(s)
- Genre(s)
- Dissertation Note
- B.S. Pennsylvania State University 2016.
- Technical Details
- The full text of the dissertation is available as an Adobe Acrobat .pdf file ; Adobe Acrobat Reader required to view the file.
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