IMF Staff Papers, Volume 47, No. 2.

This paper analyzes portfolio diversification, leverage, and financial contagion. It studies the extent to which basic principles of portfolio diversification explain 'contagious selling' of financial assets when there are purely local shocks. The paper demonstrates that the elementary por...

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Συγγραφή απο Οργανισμό/Αρχή: International Monetary Fund. Research Dept
Μορφή: Επιστημονικό περιοδικό
Γλώσσα:English
Έκδοση: Washington, D.C. : International Monetary Fund, 2000.
Σειρά:IMF Staff Papers; IMF Staff Papers ; No. 2000/001
Διαθέσιμο Online:Full text available on IMF
Περιγραφή
Περίληψη:This paper analyzes portfolio diversification, leverage, and financial contagion. It studies the extent to which basic principles of portfolio diversification explain 'contagious selling' of financial assets when there are purely local shocks. The paper demonstrates that the elementary portfolio theory offers key insights into 'contagion.' Most important, portfolio diversification and leverage are sufficient to explain why an investor will find it optimal to significantly reduce all risky asset positions when an adverse shock impacts just one asset.
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Φυσική περιγραφή:1 online resource (128 pages)
Μορφή:Mode of access: Internet
ISSN:1020-7635
Πρόσβαση:Electronic access restricted to authorized BRAC University faculty, staff and students