The Global Rise of the Value-Weighted Portfolio
35 Pages Posted: 27 Dec 2009
There are 2 versions of this paper
The Global Rise of the Value-Weighted Portfolio
Date Written: December 23, 2009
Abstract
We first develop a theory-based metric to judge the popularity of value-weighting in a stock market. We then use our metric to document that although value-weighting is less popular in emerging markets than in developed markets, its popularity is increasing almost everywhere. Finally, as we have better data for the United States, we explore why value-weighting is becoming more popular in the United States.
Keywords: Modern Portfolio Theory, Value-Weighted Portfolio, Diversification, Stock Picking, Asymmetric Information
JEL Classification: D82, F37, G11, G12, G14
Suggested Citation: Suggested Citation
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