http://knowledge.wharton.upenn.edu/ Knowledge@Wharton is an online resource that offers the latest business insights, information, and research from a variety of sources. Content includes analysis of current business trends, interviews with industry leaders and faculty, articles based on the most recent business research, book reviews, conference and seminar reports, and links to other websites. en-us Copyright (c) 2012 The Wharton School of the University of Pennsylvania http://www.wharton.upenn.edu/faculty/lewis_karen.jpg http://www.wharton.upenn.edu/faculty/ 125 45 Wharton Faculty Research Finance and Investment http://knowledge.wharton.upenn.edu/article.cfm?articleid=1891&source=rss <SPAN style="font-size: 10pt; font-family: verdana">In 2007, mutual funds specializing in non-U.S. stocks returned a fat 16%, while funds with diversified holdings in U.S. equities returned just over 6%. In fact, the foreign-stock funds have beaten domestic-stock funds over periods of two, three, five, 10 and 15 years. Moreover, owning foreign stocks helps a U.S. investor diversify risk by reducing a portfolio's volatility. Why, then, does the typical U.S. investor do little more than dabble in foreign stocks? Wharton finance professor Karen Lewis studies this issue in a paper titled, "Is the International Diversification Potential Diminishing for Foreign Equity inside the U.S.?"</SPAN> Wed, 06 Feb 2008 15:51:11 EST