Portfolio Diversification Through International Securities Investment
De Guzman, Allan
MetadataShow full item record
How effective are the strategies of diversification that U.S. portfolio managers use in managing their investment portfolios against certain types of risk? This study focuses on the area of international finance that deals with diversification of a company investor's portfolio through the investment of international securities. It provides information on the overall concept of diversification via international stocks, the various diversification strategies, and their effectiveness in dealing with different types of foreign and domestic risk. Through a complete literature review of financial journals, general background information and diversification strategies were obtained. The daily issues of The Wall Street Journal and the Chicago Tribune provided current economic conditions that were pertinent to the study. The findings proved that diversification of a portfolio was possible through the investment of foreign securities. In addition, by hedging against currency exchange risk and leveraging equity positions, less exposure to international risk was achieved.