Should U.S. Investors Hold Foreign Stocks?

  • Asani Sarkar, Kai Li
  • Published 2002


U.S. investors have traditionally been reluctant to acquire foreign securities—in part, perhaps, because they fear that restrictions on trading in foreign markets will sharply limit any gains they might realize from diversifying their portfolios. An analysis of the effects of one type of restriction, short-sale constraints, on stock returns between 1976 and… (More)


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