SHARE INVESTMENT DIVERSIFICATION: COMPARISON OF TOTAL PORTFOLIO RISK THROUGH DOMESTIC AND INTERNATIONAL DIVERSIFICATION.

Amount: SHARE INVESTMENT DIVERSIFICATION: COMPARISON OF TOTAL PORTFOLIO RISK THROUGH DOMESTIC AND INTERNATIONAL DIVERSIFICATION.

Authors: TYAS AURUMA S

Item Type: Thesis

Memberships: Master of Management Study Program, Faculty of Economics and Business Universitas Airlangga Surabaya, Indonesia

Publisher: Airlangga University

Abstract

This study aims to obtain empirical evidence regarding the difference between the total portfolio risk generated through international diversification and the total portfolio risk generated through domestic diversification, and the effect of the number of shares in the portfolio on the total portfolio risk. The technique used in this study is the t-test difference between the two independent sample group averages and the estimated effect using a simple regression equation. The sample used for both international and domestic diversification uses 21 stocks selected at random, with a research period from early January 2011 to late December 2011. The results show that there are differences in the total portfolio risk generated through international and domestic diversification, namely international diversification has a smaller total portfolio risk compared to the total portfolio risk owned by domestic diversification on all exchanges and the number of shares has a significant negative effect on total portfolio risk.

Keywords: Domestically diversification, internationally diversification, the number of shares, and portfolio risk

sources: http://repository.unair.ac.id/37033/