Business Management Dynamics

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ISSN: 2047-7031

bmd Business and Management Dynamics bmd
ISSN: 2047-7031  
Volume  8   Issue 9  2019  
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Article Abstract
International Investment Diversification with Inclusion of Mid- and Small- Caps Stocks in European Markets
Keywords:  Portfolio, International Diversification, Market Correlation, European Stocks
*Kuo-Hao Lee, Ph.D. , Wei-Chih Chiang, Ph.D. & Dina Clark, Ph.D.
This purpose of this study is to explore the behavior of returns generated from Large-, Mid-, and Small- Caps European stocks act differently and should be taken into consideration before building international portfolios. The result showed that the returns of Mid- and Small-Cap markets stocks have low correlations with both returns of World market and the U.S. country indices; while Large-Cap funds have high correlations. Investors interested in European stock market can obtain potential gains if they consider including Mid- and Small-Cap stocks in their portfolio.
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