Business Commons^™

Foreign Investment And Equity Valuation Differences In Emerging Markets, Daniel N. Beardsley

Honors Scholar Theses

This paper will focus on emerging markets, with an emphasis on Brazil, Russia, India, and China (i.e, the BRIC countries). Specifically, I will explore foreign investment trends related to these economies.

I will also explore valuation trends for emerging market-based equities. For instance, are valuation differences between emerging market-based and developed market-based equities statistically significant? What role does country risk play in the valuation of equities based in certain emerging markets? The discussion of these topics will include the use of relevant examples and effective statistical testing.

The Role Of Emerging Market In Investment Portfolios, Kelly Hallinan

Honors Scholar Theses

This thesis explores the role of emerging markets in investment portfolios. Could an investment portfolio consisting of emerging market securities have outperformed similar portfolios that did not contain emerging markets over recent years? Gathering data from January 1, 2009 to December 31, 2010, mean-variance efficiency and the efficient frontier were used to compare the risk-return tradeoff for six constructed portfolios comprised of emerging markets, developed markets, and the risk-free asset. Brazil, Russia, India, and China were chosen to represent the emerging market allocation of the portfolios, accomplished by working with a BRIC Exchange Traded Fund (ETF). The S&P 500 was …