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Abstract

One of the emerging ironies of global investing is that the more it becomes widespread, the less effective are the benefits of diversification. That is, as cross-border capital flows dramatically increase, investment markets in different countries tend to become increasingly synchronized. Ergo, this results in the reduction of benefits drawn from diversification. This phenomenon is very much observable in the more developed capital markets as barriers to international investments are being removed. As global investors seek the best risk: reward ration and the utmost value for international diversification, sharper focus has inevitably been placed on the need to assess other markets for investment opportunities. The Asian region has thus received much attention in recent years.

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