Liberalization and Returns: 1.“The integration process should lead to positive return to integration, but to lower-post liberalization returns”. 2.It is not obvious whether volatility should increase or decrease: " On the one hand markets may become informationally more efficient leading to higher volatility…On the other hand in the pre-liberalized market, there may be large swings from fundamental values leading to higher volatility. In the long run, the gradual development and diversification of the market should lead to lower volatility." 3.Correlation and Beta Increase.