The International Diversification Puzzle: Home Bias in Countries’ Investment Portfolios

Introduction

A. Home Bias in International Investment Portfolios – A Literature Review

Introduction – International Diversification and Home Bias in Portfolio Allocation – Calculation optimal portfolio weights – Potential Explanations for the Home Bias – Conclusion

B. Cultural Influences on Domestic and Foreign Bias in International Asset Allocation

Introduction – Data and Placement in Literature – Calculation of the dependent variables – Explanatory Variables and Regression Framework – Empirical Results – Conclusion

C. Is increasing Financial Integration related to improved International Risk Sharing?

Introduction – Data – Theoretical Background and Placement and Literature – Patterns of Risk Sharing and International Asset Positions – Conclusion

Summary

References