| Article ID: | iaor1995930 |
| Country: | United Kingdom |
| Volume: | 22 |
| Issue: | 3 |
| Start Page Number: | 263 |
| End Page Number: | 267 |
| Publication Date: | May 1994 |
| Journal: | OMEGA |
| Authors: | Hui T.-K., Kwan E.K. |
| Keywords: | financial |
This paper investigates the systematic covariation in equity prices among US and Asia-Pacific countries during the 1980s by employing the statistical technique of factor analysis. The results suggest that if US investors and portfolio managers were to select a large and well developed market for risk diversification, then USA, Taiwan and Japan would be appropriate. The final choice depends very much on the risk-return preference of individual investors.