Graduation Year
2026
Date of Submission
12-2025
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Professor Nishant Dass
Terms of Use & License Information
Rights Information
2025AleyaShivdasani
Abstract
This thesis investigates the risk-reducing benefits of international diversification across equity markets in the United States, the United Kingdom, and Hong Kong from 2019–2025. The analysis compares domestic and cross-country diversification curves and identifies long-run risk plateaus by constructing equal-weight random portfolios. The findings confirm that international portfolios exhibit a steeper risk decline and reach significantly lower plateau levels than purely domestic portfolios even in an era of heightened global integration. Overall, this thesis establishes that cross-market exposure provides meaningful and persistent reductions in systematic portfolio risk
Recommended Citation
Shivdasani, Aleya Kunal, "Reassessing the Power of International Equity Diversification" (2026). CMC Senior Theses. 4270.
https://scholarship.claremont.edu/cmc_theses/4270
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
