APPLICATION OF THE MODERN PORTFOLIO THEORY IN DIVERSIFICATION OF THE DEBT SECURITIES PORTFOLIO IN EMERGING MARKETS
APPLICATION OF THE MODERN PORTFOLIO THEORY IN DIVERSIFICATION OF THE DEBT SECURITIES PORTFOLIO IN EMERGING MARKETS
Author(s): Miloš GrujićSubject(s): Financial Markets
Published by: Ekonomski fakultet Pale - Univerzitet u Istočnom Sarajevu
Keywords: modern portfolio theory; diversification; debt securities; bond market;
Summary/Abstract: The term "portfolio analysis", introduced in the economic theory by Harry Markowitz, is not a new term in scientific literature. However, analysis and criticism in the papers of local and foreign authors are mainly based on the examples of developed capital markets. There are very few cases of application of the portfolio analysis in the domestic capital market. The focus of this paper is on implementation of diversification of the bonds on the Banja Luka Stock Exchange. Using Markowitz's portfolio selection, we will prove that diversification, including all limitations, is possible and applicable onto the domestic bonds in the capital market.
Journal: Zbornik radova Ekonomskog fakulteta u Istočnom Sarajevu
- Issue Year: 2016
- Issue No: 13
- Page Range: 67-80
- Page Count: 14
- Language: English