Exhibit 15.1 Portfolio Risk Reduction Through Diversification

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Exhibit 15.1 Portfolio Risk Reduction Through Diversification


Exhibit 15.2 Portfolio Risk Reduction Through International Diversification


Exhibit 15.3 Optimal Domestic Portfolio Construction


Exhibit 15.4 The Internationally Diversified Portfolio Opportunity Set


Exhibit 15.5 The Gains from International Portfolio Diversification


Exhibit 15.6 Alternative Portfolio Profiles Under Varying Asset Weights


Exhibit 15.7 Real Returns and Risks on the Three Major Asset Classes, Globally, 1900–2000


Exhibit 15.8 Correlation Coefficients Between World Equity Markets, 1900–2000


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)


Exhibit 15.10 Comparison of Selected Correlation Coefficients Between Stock Markets for Two Time Periods (dollar returns)


Exhibit 1 Russell/Mellon Survey of 19 Active Managers, Ending June 30, 2003


Exhibit 2 Annual Historical Excess Returns, Annual Risk, and Sharpe Ratios for Selected Equities and Currencies, January 1978 to February 2003

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Exhibit 15.1 Portfolio Risk Reduction Through Diversification