Posts Tagged ‘ market cap ’

You’ve got the whole world in your portfolio

December 29, 2011
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You’ve got the whole world in your portfolio

A famous finance professor once told us that good diversification meant holding everything in the world. Fine, but in what proportion?Suppose you could invest in every country in the world. How much would you invest in each? In a market-capitalization weighted index, you'd invest in each country in proportion to the market value of its investments (its "market capitalization")....

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