Stock Returns of Developed and Emerging Markets of Europe‪.‬

INTRODUCTION Many investors from developed countries invest a portion of their portfolios in emerging stock markets. Generally, investors believe that emerging stock markets generate higher returns and also exhibit greater volatility when compared with stock markets of developed countries. Some researchers have observed that investing in individual emerging markets can be risky for investors from developed countries, so that investors from developed countries should invest in a cross-section of emerging market indices in order to moderate the volatility of returns.