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.
|Number of pages||6|
|Journal||The Journal of Financial Transformation, Journal|
|Publication status||Published (in print/issue) - 1 Feb 2013|