Diversification in a Small Market: Some Evidences from Namibia

Udai Lal Paliwal

Abstract


Maximizing returns and minimizing risk through diversification has been a popular topic in economics and finance research. Studies have shown that correlation among international portfolio returns increases during periods of turbulence in capital markets, meaning that benefits from international diversification are lost exactly when they are needed most (Bodie, Kane & Marcus, 2008). This and other similar findings pave the way for nontraditional diversification strategies. The present paper is an attempt to analyse portfolio returns and diversification benefits of including gold, bonds, real estate and stock in portfolio of a Namibian investor.

Full Text: PDF DOI: 10.5539/ijef.v5n5p184

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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