What is the appropriate index construction methodology for African equity investment?

Daniel Broby, Morgan Lochead

Research output: Contribution to journal › Article

Abstract

The authors build on research into the African equity universe to recommend a more appropriate index for investment. Three different methodologies were investigated, namely capitalization, equal, and fundamental weighting of index constituents. The authors conclude that diversification is not best served by a market capitalization approach to African index construction and that better risk/reward characteristics can be achieved by the alternative methodologies surveyed.
LanguageEnglish
Pages107-112
Number of pages6
JournalJournal of Financial Transformation
Volume36
Publication statusPublished - Feb 2013

Fingerprint

Equity
Africa
Index construction
Methodology
Weighting
Diversification
Market capitalization
Capitalization
Reward

Keywords

  • African equity
  • African equity index
  • index contruction

Cite this

Broby, Daniel ; Lochead, Morgan. / What is the appropriate index construction methodology for African equity investment?. In: Journal of Financial Transformation. 2013 ; Vol. 36. pp. 107-112.
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Broby, D & Lochead, M 2013, 'What is the appropriate index construction methodology for African equity investment?' Journal of Financial Transformation, vol. 36, pp. 107-112.

What is the appropriate index construction methodology for African equity investment? / Broby, Daniel; Lochead, Morgan.

In: Journal of Financial Transformation, Vol. 36, 02.2013, p. 107-112.

Research output: Contribution to journal › Article

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Broby D, Lochead M. What is the appropriate index construction methodology for African equity investment? Journal of Financial Transformation. 2013 Feb;36:107-112.

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