Quantitative Analysis of Modern Portfolio Theory for Diversification of Risk
45 Pages Posted: 10 Aug 2012
Date Written: August 10, 2012
Abstract
The paper is an empirical research work wherein the principle of Modern Portfolio Theory along with aspects of geographical diversification have been subjected to test. The validation of the said theory has been made via hypothesis testing in light of the financial market data. The paper has identified certain aspects to be kept in mind while diversifying geographically and through the application of MPT. There has also been an attempt to plausibly enhance the applicability of MPT in diversifying risk.
Keywords: Diversification, Risk, MPT, Geographical Diversification
JEL Classification: C00, C10, C12, C40, C50, C52, F21, G00, G11
Suggested Citation: Suggested Citation