A Comparison of Package Investment and Direct Investment in an International Portfolio

• Main Authors: Chu-Yin Kuo, 郭竹吟
• Other Authors: Jin-Ray Lu
• Format: Others
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/43syvn

碩士 === 國立東華大學 === 財務金融學系 === 102 === This study explores optimal decisions of simple international portfolios included domestic risky assets, foreign risky assets, domestic bonds, and foreign bonds for an international investors. Specifically, we compare asset allocations between a direct investment policy and a package investment policy in investors’ portfolios. We suggest that an allocation method for investor’s wealth on the foreign assets or domestic assets is important for international investors, who concern the risks and returns of risky assets and exchange rate. The investment ratios of domestic stocks and foreign stocks for the package investment policy are different to those for the direct investment policy, in some conditions. The asset weight is more stable for the package investment policy in response to the relevant variables; however, the direct investment policy behaves more sensitive on the decision of asset allocations.