Common Stocks: Analysis and Strategy

In diversified portfolio, market risk accounts for 90% of the variability . Investors buying foreign stocks face the same issues on market risk of the foreign country. i.e. Japanese stock prices drastically fell in the 90’s . Overall market (Nikkei) peaked at end of 1989 at 39000 and . by mid-1992 had dropped to below 15000 --- 60% drop ................
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