Exhibit 3 The Internationally-Diversified Portfolio Opportunity Set Expected Return of Portfolio,Rp DP R DP Internationally diversified portfolio opportunity set R Domestic portfolio ◆ opportunity set Expected Risk DP of Portfolio, The addition of internationally-diversified portfolios to the total opportunity set available to the investor shifts the total portfolio opportunity set left,providing lower expected risk portfolios for each level of expected portfolio return
Exhibit 3 The Internationally-Diversified Portfolio Opportunity Set Expected Return of Portfolio, Rp Expected Risk of Portfolio,)p Domestic portfolio opportunity set Internationally diversified portfolio opportunity set Rf • DP σ DP R DP The addition of internationally-diversified portfolios to the total opportunity set available to the investor shifts the total portfolio opportunity set left, providing lower expected risk portfolios for each level of expected portfolio return
International Diversification and Risk It is critical to be clear as to exactly why the internationally diversified portfolio opportunity set is of lower expected risk than comparable domestic portfolios. ■ The gains arise directly from the introduction of additional securities and/or portfolios that are of less than perfect correlation with the securities and portfolios within the domestic opportunity set. 制计香价蜀易上孝
International Diversification and Risk It is critical to be clear as to exactly why the internationally diversified portfolio opportunity set is of lower expected risk than comparable domestic portfolios. The gains arise directly from the introduction of additional securities and/or portfolios that are of less than perfect correlation with the securities and portfolios within the domestic opportunity set