Portfolio diversification in a highly infationary emerging market

Authors

  • Michael E. Hanna School of Business and Public Administration, University of Houston-Clear Lake, Houston, TX 77058, USA
  • Halil Kiymaz School of Business and Public Administration, University of Houston-Clear Lake, Houston, TX 77058, USA
  • Grady Perdue School of Business and Public Administration, University of Houston-Clear Lake, Houston, TX 77058, USA

DOI:

https://doi.org/10.1016/S1057-0810(02)00092-6

Keywords:

Turkish market, Emerging markets;, Portfolio selection, Diversification

Abstract

This study applies modern portfolio theory to the individual asset allocation decision of an investor in an emerging market. The study utilizes data from January 1991 to January 1999. Turkey's experience with high in ̄ation, depreciation in its currency, and a relatively fast growing economy provide a unique ®nancial environment to examine personal portfolio asset allocation. Seven investments are considered for inclusion in the portfolio, including the Turkish, German and American stock markets, gold, and 12-month bank deposits denominated in Turkish liras, German marks, and U.S. dollars. The findings indicate that the lira-denominated bank deposit is the dominant investment vehicle. Copyright 2001 Elsevier Science Inc. All rights reserved.

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Published

2001-12-30

How to Cite

Hanna, M. E., Kiymaz, H., & Perdue, G. (2001). Portfolio diversification in a highly infationary emerging market. Financial Services Review, 10(1-4), 303–314. https://doi.org/10.1016/S1057-0810(02)00092-6

Issue

Vol. 10 No. 1-4 (2001): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2001 Elsevier Science Inc.

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