该文件指出了几个关键的金融方面和问题，这些问题已经统治金融领域数年。本文结合英国目前的市场状况，探讨了Fama在1970年和1991年提出的有效市场假说。本文提出了投资组合经理资产国际化背后的理念(Fabozzi and Peterson Drake, 2009)。投资组合经理所持资产的内部化，旨在管理与投资相关的风险。本文对行为金融学面临的挑战进行了评估和识别，最后探讨了哈里•马科维茨的现代投资组合理论，探讨了投资组合经理实现收益最大化和风险最小化的方法
然而，Jenson(1978)和Grossmanand Stiglitz(1980)加强了Fama(1970)对市场效率的定义，因为他们将信息成本和交易成本纳入了市场效率的范围。名声(1991)随后又开始即兴发挥他的市场效率定义，并指出市场效率受到连续统一性的影响。根据Jones和Netter(2008)的研究成果，Fama(1991)对交易成本和市场效率持怀疑态度。他接着说，如果降低交易成本和获取信息的成本，市场效率是可以维持的。在Fama(1991)的研究著作中，他提出基于资产价格的信息效率可以从两大类中推断出来。首先，投资者只有在获得超额回报的情况下才会对交易策略敏感。第二，反映所有信息的股票价格可能会促进新投资资本价值最高的使用(Fama, 1991)
The paper has identified several key financial aspects and issues that have been ruling the area of finance for several years. In this paper, the Efficient Market Hypothesis developed by Fama in 1970 and 1991 has been explored with reference to the present market conditions in the UK. The paper has presented the idea behind the internationalization of the holdings of portfolio managers (Fabozzi and Peterson Drake, 2009). The internalization of holdings of portfolio managers has been aimed to manage the risk associated with the investments. This paper evaluated and identified the challenges faced by Behavioral finance and lastly, the Modern Portfolio Theory by Harry Markowitz has been explored to address the way in which the portfolio managers are able to maximize their returns and mitigate risk.UK
However, the definition of market efficiency of Fama (1970) was enhanced by Jenson (1978) and Grossmanand Stiglitz (1980) as they incorporated the cost of information and the transaction costs within the purview of market efficiency. Fame (1991) then went on to improvise his market efficiency definition and noted that the market efficiency is subject to the continuum. Based on the research work conducted by Jones and Netter (2008), it was revealed that Fama (1991) had been skeptical about the transaction costs and the market efficiency. He then stated that the market efficiency can be sustained if the transaction cost and the cost of obtaining information are lowered. In this research works of Fama (1991), he propounded that the informational efficiency based on the asset prices can be deduced under two broad categories. The first is that the investors are sensitive to the trading strategies only if it earns an excess return. The second is that the stock prices which reflect all information are likely to promote the highest valued use of the new investment capital (Fama, 1991).
The volatility in the market conditions enables a portfolio manager to internationalize their holdings. Internalization of the portfolio investment not only provides the opportunity to stabilize the portfolio but would also warrant potential higher yields associated with less risk. Thus, it can be said that the portfolio managers internationalize their holdings in order to mitigate different types of risk. Through internationalization of holdings, the portfolio managers would be able to invest in foreign securities and participate in the growth of other countries. This would potentially diversify the risk of the bearish market and thereby portfolio managers are able to manage risks. One of the important reasons behind the internationalization of holdings is that it would help to reduce the volatility in the portfolio management (Bartram and Dufey, 2007). The benefit of the international investing is based on the return correlation and volatility