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

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

Author: TYAS AURUMA S

Item Type : Thesis (Thesis)

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

Publisher: Universitas Airlangga

Abstract

This research aims to obtain empirical evidence regarding the difference between the total risk of a portfolio produced through international diversification and the total risk of a portfolio produced through domestic diversification, and regarding the influence of the number of shares in a portfolio on the total risk of the portfolio. The technique used in this research is the t test. Difference between two independent sample group means and effect estimation using a simple regression equation. The sample used for both international diversification and domestic diversification used 21 randomly selected shares, with a research period from the beginning of January 2011 - the end of December 2011. The results of the research show that there is a difference in the total risk of the portfolio produced through international and domestic diversification, namely International diversification has a smaller total portfolio risk compared to the total portfolio risk of domestic diversification on all exchanges and the number of shares has a significant negative effect on total portfolio risk.

Keywords: Domestic diversification, international diversification, the number of shares, and portfolio risk

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