Risk Management in Emerging Markets pptx

[...]... countries in Asia, Eastern Europe, North Africa and other emerging markets in various continents They present the latest findings that are important for better understanding of the nature of risks in those markets, and useful to all those involved in decision-making for investment in emerging markets Chapter 2 looks at hedging decisions in the presence of price and political risks in emerging markets. .. common in emerging markets, as well as production risks, derivative risks, asset allocation and return tradeoff risks They also include studies of risks associated with information efficiency of the stockmarkets and the Value at Risk (VaR) in emerging markets The countries examined include India, Pakistan, Poland and Morocco, as well as a study that examines risks of portfolios that include 16 emerging. .. non-tradable risk like nondiversifiable income, human capital, political risk, non-marketable assets, informational asymmetries and irreplaceable commodities This is the case when investing in emerging markets, where investors face two sources of risk: economic risk and background risk Investors in emerging markets face non-tradable risks which add background to their investment, and when this background risk increases... emerging markets and the usefulness of some of the existing models in assessing the trade-off between risks and returns in those markets The eight studies included here provide a valuable insight into the type of risks that investors might face in emerging markets and the appropriate methods of risk management that should be used These include background risks such as human, capital and political risks... to markets and institutions in developed economies, and the growth of emerging markets in recent years has raised the need for a reexamination of the existing models and development of a new set of models that take into account the specific features of emerging economies In this respect this book is designed to provide an understanding of the type of risks that investors might face in various emerging. .. findings about risk management in a diverse range of emerging markets across the world SIMA MOTAMEN-SAMADIAN xi This page intentionally left blank Acknowledgements This volume is a collection of some of the papers that were presented at the International Conference on Emerging Markets and Global Risk Management in June 2004 in London The conference was organized by the Centre for the Study of Emerging. .. horizons arising from the absence of short-swing profit restrictions in Polish law Chapter 7 provides an insight into the problems of trading risk management and their application to emerging markets with a specific focus on the Moroccan stockmarket Here Al Janabi first highlights the important role of emerging markets in recent years in portfolio diversification for both institutional and retail investors... United Kingdom Ali Malik is a Visiting Lecturer at the Westminster Business School, University of Westminster, United Kingdom Sima Motamen-Samadian is Director of the Centre for the Study of Emerging Markets and a Principal Lecturer in Economics at the Westminster Business School, University of Westminster, United Kingdom Mohamed Nurullah is a Lecturer in the Division of Risk, Caledonian Business School,... production and hedging in the presence of the above two risks, and shows that when price risk is independent of background risk, the investor’s willingness to hedge decreases if the forward market exhibits contango and increases in the case of backwardation Jokung also shows that when price risk and background risk are independent, wealthier individuals with decreasing risk- aversion tend to invest a larger... Corporations (IFC) that include 16 emerging markets and 14 developed markets, and apply it to the Markowitz model and assess the extent by which inclusion of emerging markets affects the risk and return of the portfolio Their results confirm the expectation that inclusion of emerging markets will increase the return of the portfolio but also add to its risks They also use the Capital asset pricing model (CAPM) . EMERGING MARKETS DYNAMIC MODELS AND THEIR APPLICATIONS IN EMERGING MARKETS RISK MANAGEMENT IN EMERGING MARKETS GOVERNANCE AND RISK IN EMERGING AND GLOBAL MARKETS Also by Sima Motamen-Samadian INTERNATIONAL. derivative markets and hedging decisions in emerging markets, governance and risk in emerging markets, etc. The series will be one of the main sources of reference on emerging markets, both within and. accuracy in emerging markets, dynamic models and their application in emerging markets, sovereign debt and its implications, exchange rate regimes and their merits, risk management in emerging markets,