Main Article Content
Generally, risk is an uncertainty associated with future outcomes or events. In economic terms, risk is an expected deviation from the planned return of real, financial and intangible assets, of loss or cash flows associated with the uncertain event. The most famous way of reducing the overall risk is diversification of assets. Thus, diversification is a process of investment in a number of unrelated or partially related assets or activities in order to achieve stable business operation, and it shows that portfolios are poor to the extent that they should be avoided in order to increase yields and reduce risk. The portfolio diversification works because prices of different shares do not move in the entirely same direction. Statisticians generally mean the same thing when they say that share price changes are nothing less than perfectly correlated. The main objective of this paper is to discuss the impact of the global financial crisis on the movement tendency of the stock exchange index in the Western Balkans, developed countries and individual EU member states, and determine the feasibility of implementing regional diversification in order to further reduce risk and establish the portfolio of share with the lowest coefficients of correlation.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Once the manuscript is accepted for publication, authors shall transfer the copyright to the publisher. If the submitted manuscript is not accepted for printing by the journal, the authors shall retain all their rights. The following rights on the manuscript are transferred to the publisher, including any supplementary materials and any parts, extracts or elements of the manuscript:
- the right to reproduce and distribute the manuscript in printed form, including print-on-demand;
- the right to print prepublications, reprints and special editions of the manuscript;
- the right to translate the manuscript into other languages;
- the right to reproduce the manuscript using photomechanical or similar means including, but not limited to photocopy, and the right to distribute these copies;
- the right to reproduce and distribute the manuscript electronically or optically using and all data carriers or storage media, and especially in machine readable/digitalized form on data carriers such as hard drive, CD-ROM, DVD, Blu-ray Disc (BD), Mini Disc, data tapes, and the right to reproduce and distribute the article via these data carriers;
- the right to store the manuscript in databases, including online databases, as well as the right to transmit the manuscript in all technical systems and modes;
- the right to make the manuscript available to the public or to closed user groups on individual demand, for use on monitors or other readers (including e-books), and in printable form for the user, either via the Internet, online service, or via internal or external networks.
Authors reserve the copyright to published articles and have the right to use the article in the same manner like third parties in accordance with the licence Attribution-Non-Commercial-Non-Derivate 4.0 International (CC BY). Thereby they must quote the basic bibliographic data of the source article published in the journal (authors, article title, journal title, volume, pagination).
Bawa, S. V., Elton, J. E. and Gruber, J. M. 1979. „Simple rules for Optimal Portfolio Selection in stable Paretion Market“. The Journal of Finance, (34):4.
Bodie, Z., Kane, A., and Marcus, J. A. 2009. Osnovi investicija. Beograd: DATASTATUS.
Belgrade stock exchange (BSE). 2012. Godišnji izveštaj o poslovanju u 2012. godini. http://www.belex.rs/files/proizvodi_i_usluge/GI_2012.pdf.
Berenson, M. L., and Levine, D. M. 1996. Basic Business Statistics – Concepts and Applications. New Jersey: Prentice Hall.
Brigham, E., Daves, P., and Gapenski, L. 2004. Intermediate Financial Management. Mason OH: Thomson South–Western.
Damodaran, A. 2010. Analiza vrijednosnica za investicijske i korporativne financije. Drugo izdanje. Zagreb: MATE.
Dobardžić, E. 2013. „Dinamičke interakcije međunarodnih tržišta kapitala: perspektiva Srbije”. Ekonomske teme, 51 (1): 123 -137.
DeFusco, R.A., McLeavey, D. W., Runkle, D. E. 2004. Quantitative methods for investment analysis. Second Edition. Virginia: CFA Institute.
Directorate for economic planning (DEP) 2012. “Godišnji izvještaj, 2012.” Ekonomski trendovi, http://www.dep.gov.ba/default.aspx?langTag=bs-BA&template_id=139&pageIndex=1.
Erić, D., and Đukić, M. 2012. Finansijska tržišta u uslovima krize. Beograd: Institut ekonomskih nauka i Beogradska bankarska akademija - Fakultet za bankarstvo, osiguranje i finansije.
Finance. 2013. Yahoo Finance Diversification. http://finance.yahoo.com (Accessed, October 30, 2013).
Hunter, J. R., and Coggin, T. D. 1990. „An Analysis of the Diversification Benefit from International Equity Investment”. The Journal of Portfolio Management, 17(1).
Madura, J., and Tucker, A. L. 1992. „Hedging International Stock Portfolios: Lessons from the 1987 Crash”. The Journal of Portfolio Management, 18(3).
Richard, A. B., Myers, S., and Marcus, J. A. 2007. Osnovi korporativnih finansija. Beograd: MATE.
Solnik, B., McLeavey, D. 2009. Global Investments. Sixth Edition. Boston: Pearson International Edition.
Solnik, B. 1974. „Why Not Diversity Internationally Rather than Domestically“?. Financial Analysts Journal.
Šoškić, I., and Serdar, V. 1994. Uvod u statistiku. Zagreb: Školska knjiga.
Vukičević, M., Gregurek, M., Odobašić, S., and Grgić, J. 2010. Finansijski menadžment u MS Excelu, Zagreb: Golden marketing - Tehnička knjiga.