... of extreme return volatility. These timing differences affect not only the returns of all the ADRs but also show how ADR IPOs and SEOs tend to have opposite return behaviour based on timing. These return differences are important because the major benefits of portfolio diversification are achieved when asset...

... during month t (XR_{t) is computed as the simple average of the sum of the excess returns of each of the n securities as shown below in Equation (2): (Equation 2) American depository receipts International investing Portfolio diversification Investments}...