Question: Consider a U.S. pension fund with the following performance: Is the risk-return performance of the foreign portfolio attractive? Standarod Deviation o Return(%) 15 20 Percentage

Consider a U.S. pension fund with the following performance:

Is the risk-return performance of the foreign portfolio attractive?

Standarod Deviation o Return(%) 15 20 Percentage Total Portfolio Total Dollar Return (%) 10 Correlation with U.S Stock Index U.S. equity Foreign equity 90 10 0.99 -0.10

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