Question
Consider the following table showing the total equity portfolio weights allocated by investors in their home country and in other countries: Portfolio Weight United States
Consider the following table showing the total equity portfolio weights allocated by investors in their home country and in other countries:
| Portfolio Weight | |||
| United States | Japan | United Kingdom | |
| United States | 93% | 4% | 2% |
| United Kingdom | 4% | 1% | 94% |
| Japan | 1% | 95% | 2% |
| France | 2% | 3% | 3% |
For example, in the first row, we see that U.S. investors allocated 93% of the total equity portfolio to U.S. stocks, 4% to Japanese stocks, and 2% to U.K. stocks (other countries are omitted).
Assuming no leverage and only long positions, which countrys investors demonstrate the strongest home bias?
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The Global Financial Crisis And The New Monetary Consensus
Authors: Marc Pilkington
1st Edition
0415524059, 978-0415524056
