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- Title
International Diversification for Brazilian Investors through Domestic Assets.
- Authors
Borges Junior, Dermeval Martins; Fernandes Malaquias, Rodrigo
- Abstract
We develop this study in order to analyze the benefits of international diversification through domestic assets for Brazilian investors. The sample contains three types of assets: Brazilian Depositary Receipts (BDRs), Brazilian investment funds that have part of their portfolios made up of investments in foreign companies and stocks listed on the Brazilian capital market. Additionally, portfolios with ten different combinations of these assets were elaborated. We analyzed the data using correlation coefficients, risk-adjusted return and volatility measures. The results indicated that portfolios mainly comprised of BDRs presented the lowest correlation with the Brazilian market index, as well as the highest Sharpe ratio. The portfolios with the lowest volatility in returns were those majoritarily linked toi nvestment funds. This study contributes to the literature by analyzing some possible benefits of international diversification from the perspective of investors in emerging countries, since studies on this subject usually involve domestic investors from developed markets, especially from the United States.
- Publication
Revista Contabilidade, Gestao E Governanca, 2017, Vol 20, Issue 3, p332
- ISSN
1984-3925
- Publication type
Academic Journal
- DOI
10.21714/1984-3925_2017v20n3a2