Exhibit 15.1 Portfolio Risk Reduction Through Diversification

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Presentation transcript:

Exhibit 15.1 Portfolio Risk Reduction Through Diversification Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Exhibit 15.2 Portfolio Risk Reduction Through International Diversification Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Exhibit 15.3 Optimal Domestic Portfolio Construction Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Exhibit 15.4 The Internationally Diversified Portfolio Opportunity Set Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Exhibit 15.5 The Gains from International Portfolio Diversification Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Exhibit 15.6 Alternative Portfolio Profiles Under Varying Asset Weights Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Exhibit 15.7 Real Returns and Risks on the Three Major Asset Classes, Globally, 1900–2000 Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Exhibit 15.8 Correlation Coefficients Between World Equity Markets, 1900–2000 Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Exhibit 15.9 Summary Statistics of the Monthly Returns for 18 Major Stock Markets, 1977–1996 (all returns converted into U.S. dollars and include all dividends paid) Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Exhibit 15.10 Comparison of Selected Correlation Coefficients Between Stock Markets for Two Time Periods (dollar returns) Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Exhibit 1 Russell/Mellon Survey of 19 Active Managers, Ending June 30, 2003 Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Exhibit 2 Annual Historical Excess Returns, Annual Risk, and Sharpe Ratios for Selected Equities and Currencies, January 1978 to February 2003 Copyright © 2006 Pearson Addison-Wesley. All rights reserved.