engleski

International portfolio management - The case of Croatian and EMU stock markets

: The stock markets in EMU member countries are going through a process of integration and globalization. Diversification opportunities in a country asset allocation setting have diminished within Europe because of increased correlation. As a result of this process, international portfolio investors are in search for other foreign stock markets securities because of the their potential of higher return, and diversification benefits. The purpose of the research is to find out whether the Croation stocks are challenging enough for the investors from developed markets to be included in an international portfolio. In this paper, benefits derived from international diversification of stock portfolios are analysed from the EMU point of view, and Croatian point of view, using the Markowitz optimizer. According to the principles of the MPT model, we may say that the investors coming from EMU markets will find the Croatian stocks attractive, only provided that such investments are effective, and vice versa.

EMU stock markets; Croatian stock market; Iinternational portfolio management; MPT

nije evidentirano