BUSI 4502 Study Guide - Final Guide: Confidence Interval, Weighted Arithmetic Mean

• School: Carleton University
• Department: Business
• Course: BUSI 4502
• Professor: Bill Lawson

Document Summary

Article 10 the rise of sector in major equity markets. When considering international diversification, investors often look into national markets in order to attain the benefits of risk reduction. Global asset class has become investor(cid:495)s universal choice and rarely will investors consider industrial sector. Prior studies show that global integration is increasing and that country effects contributed more as compared to the sector effects. However, this trend is believed to change over the years as economies and capital markets has attract more attention for diversification. Hence, this study main aim is to determine if the trend has changed or that the country effect is indeed dominating sector effect and whether global market integration is increasing. In this empirical test, the samples used are 10 sectors indexes within 7 largest countries, which are market-capitalized, weighted and contain roughly 80% of stock in each market. Researches examined the u. s. dollar-dominated total monthly return of those 10 indexes from 1979 until 1999.