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Journal of Applied Sciences

Year: 2006 | Volume: 6 | Issue: 1 | Page No.: 102-113
DOI: 10.3923/jas.2006.102.113
Advantages of International Financial Diversification in Europe Through Investment in Equity Funds
Luis Ferruz, Isabel Marco and Francisco Javier Rivas

Abstract: In the context of rapid globalisation of financial markets and consolidation of European Economic and Monetary Union, we have carried out a financial risk-return analysis on a sample of the best-performing diversified equity funds investing internationally in the whole of Europe. The financial risk analysis is based on historic homoscedastic volatilities. The objective was to verify whether fund managers who diversify savings through such investment vehicles achieve performance gains, obtaining similar or higher returns at lower levels of risk than would be possible through direct investment in shares. The risk-return benchmark used in the study is the Euro Stoxx 50 index.

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How to cite this article
Luis Ferruz, Isabel Marco and Francisco Javier Rivas, 2006. Advantages of International Financial Diversification in Europe Through Investment in Equity Funds. Journal of Applied Sciences, 6: 102-113.

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