Publication Date

1-1-1992

Document Type

Dissertation/Thesis

First Advisor

Dowen, Richard J.

Degree Name

B.S. (Bachelor of Science)

Legacy Department

Department of Finance

Abstract

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.

Extent

iv, 71 pages

Language

eng

Publisher

Northern Illinois University

Rights Statement

In Copyright

Rights Statement 2

NIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.

Media Type

Text

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