| Abstract: | Recent studies have indicated the potential gains to U.S. investors from international portfolio diversification. Due to the rapid growth of the four Asian newly industrialised countries (NICs), namely, Hong Kong, Singapore, South Korea and Taiwan, it is believed that U.S. investors will become increasingly interested in these equity markets. The purpose of the present study is to investigate from the U.S. perspective, the prospects of diversifying across the countries. The results indicate that a diversified portfolio among these markets yields a higher return-to-risk ratio than investing in the U.S. market alone.The authors are with the School of Management, National University of Singapore. |
