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Risk Appetite, Home Bias and the Unstable Demand for Emerging Market Assets.

Abstract:

Home bias arises when the actual portfolio of an investor consists of a smaller proportion of foreign assets than that predicted by standard portfolio theory for the observed set of risks and returns on available assets. The existence and persistence of home bias undermines the theoretical case for the efficiency of international capital markets. In this paper we use data on UK pension fund portfolios to measure home bias, and find that this is doubly acute in the case of emerging market equi...

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Publisher copy:
10.1080/02692170500213335
Publisher:
Routledge
Journal:
International Review of Applied Economics
Volume:
19
Issue:
4
Pages:
459 - 476
Publication date:
2005-01-01
DOI:
ISSN:
0269-2171
Language:
English
UUID:
uuid:394baff8-99a7-4132-85a5-52d75e5c619b
Local pid:
oai:economics.ouls.ox.ac.uk:10790
Deposit date:
2011-08-16

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