Evaluation of total risk and systematic risk in emerging stock markets

The world financial system was reshaped by globalization and the developments in the communication technology in the last twenty-five years. In the early 1990?s, international investors began to prefer developing countries to invest because of low growth rates in developed countries.Estimation of total risk (standard deviation) and systematic risk (Beta) coefficient are backbone of the modern portfolio theory. Finance literature in the field research, one being calculated for the standard deviation and beta, the return type of calculation, which represents the market index will, be addressed and so the forecast period, depending on variables may take different values are shown. In this study, variability was measured by emerging markets. Variability in the measurement of the total risk as a measure of standard deviation, a measure of systematic risk beta coefficient was calculated Incentives. This paper examines whether in the same return interval, different periods effect are seen in The Morgan Stanley Capital International (MSCI) for the periods June 2002 ? May 2005, June 2005 ? May 2008 and June 2008 ? May 2009. This paper concludes that standard deviation and beta instability are existence in the MSCI EM and there is not any effect of estimation period on the stability.