Citation :
It would appear then, that most global equity portfolios, no matter how sophisticated, are still guilty of home bias. For decades, they have been missing an opportunity to earn higher risk-adjusted returns by allocating too low a share of their portfolios to international equity. We think their EM allocations are still too low. The analysis above suggests that the typical EM allocation is at most about half, and perhaps as little as one sixth, of what a rational approach would recommend.
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