Emerging Market Stocks: Higher Returns but at What Risk

Abstract

This abstract was created post-production by the JFI Editorial Board.

There is ample evidence that investing in emerging markets can be risky. Many factors, some of which a specific country or region may have little control over, can readily affect economic and investment returns. Authors ofthis research found there can be a wide variation in GDP growth between different countries in any given year. In addition, equity returns of these countries may not be always associated with economic activity and also display wide variation. Assessing financial and country risk prospects will help the investor make appropriate long-term investment, asset allocation, and portfolio selection decisions.