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Excess returns and international diversification: The Scandinavian view

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  • G. G. Booth
  • T. Martikainen

Abstract

The paper discusses excess returns within four Scandinavian stock markets and also how Scandinavian returns are related to the returns in non-Scandinavian markets. Some underlying reasons for the observed economically weak relationships between markets are reviewed. Moreover, some reasons why the interrelationships between markets can be expected to increase in the future are provided.

Suggested Citation

  • G. G. Booth & T. Martikainen, 1999. "Excess returns and international diversification: The Scandinavian view," The European Journal of Finance, Taylor & Francis Journals, vol. 5(3), pages 181-185.
    • Handle: RePEc:taf:eurjfi:v:5:y:1999:i:3:p:181-185
    DOI: 10.1080/135184799337028
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    References listed on IDEAS

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    1. Virtanen, Ilkka & Yli-Olli, Paavo, 1987. "Forecasting stock market prices in a thin security market," Omega, Elsevier, vol. 15(2), pages 145-155.
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    5. Booth, G. Geoffrey & Martikainen, Teppo & Tse, Yiuman, 1997. "Price and volatility spillovers in Scandinavian stock markets," Journal of Banking & Finance, Elsevier, vol. 21(6), pages 811-823, June.
    6. Alexandros Benos & M. Crouhy, 1996. "Changes in the Structure and Dynamics of European Securities Markets," Working Papers hal-00515308, HAL.
    7. Mathur, Ike & Subrahmanyam, Vijaya, 1990. " Interdependencies among the Nordic and U.S. Stock Markets," Scandinavian Journal of Economics, Wiley Blackwell, vol. 92(4), pages 587-597.
    8. Liljeblom, Eva & Loflund, Anders & Krokfors, Svante, 1997. "The benefits from international diversification for Nordic investors," Journal of Banking & Finance, Elsevier, vol. 21(4), pages 469-490, April.
    9. Ø. Gjerde & F. Sættem, 1995. "Linkages among European and world stock markets," The European Journal of Finance, Taylor & Francis Journals, vol. 1(2), pages 165-179.
    10. Malkamaki, Markku J. & Martikainen, Teppo & Perttunen, Jukka, 1991. "On the riskiness of the world's stock markets," European Journal of Operational Research, Elsevier, vol. 53(3), pages 288-296, August.
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    Keywords

    Diversification; Scandanavia;

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