Composition of the olp for a u.s. Investor Belgian market 14.66 Italian market 0.37 Japanese market 9.25 Dutch market 14.15 Swedish market 20.26 U.S. market 41.31% Total 100.00% McGraw-Hilylrwoin 11-10 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rights
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 11-10 Composition of the OIP for a U.S. Investor Belgian market 14.66% Italian market 0.37% Japanese market 9.25% Dutch market 14.15% Swedish market 20.26% U.S. market 41.31% Total 100.00%
Gains from International Diversification For a u.s. investor. the risk-return tradeoff for the optimal internationa portfolio and optimal OIP domestic portfolio are 1.53% shown below and at right. I.33% ODP OⅠP ODP Mean 1.53% 1.33% Return Standard 4.27% 4.56% 427%0456%risk Deviation McGraw-Hilylrwoin 11-11 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rights
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 11-11 1.53% 1.33% Gains from International Diversification ⚫ For a U.S. investor, the risk-return tradeoff for the optimal international portfolio and optimal domestic portfolio are shown below and at right. OIP ODP Mean Return 1.53% 1.33% Standard Deviation 4.27% 4.56% risk return 4.27% 4.56% OIP ODP