KALL - Studying Abroad: China State-Owned Enterprises
By Kara Marciscano
Investing is rooted in quantitative analysis, but the ultimate decision to buy or sell is often overruled by intuition.
The latter situation may cause investors' portfolios to reflect a home bias - their portfolios lack global diversity and are concentrated in securities listed in their own country.
Perhaps there is some validity to this common behavioral tendency. Investing internationally can add a layer of complexity, especially when corporate governance and political influence are concerns.
Naturally, many investors default to "beta" products that offer total market exposure for their foreign equity allocations.
But