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Kim Deal, a famous U.S. hedge fund manager, claims that given the U.S. stock markets spectacular performance, there would be little reason to have emerging

Kim Deal, a famous U.S. hedge fund manager, claims that given the U.S. stock markets spectacular performance, there would be little reason to have emerging markets exposure in his portfolio and dismisses the idea of international portfolio diversification. Indeed, many financial economists have proposed that Kim Deals claim can be reconciled with behavioral or rational stories (i.e., risk premia). Critically evaluate Kim Deals claim with reference to appropriate theories and empirical evidence.

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