Consider a U.S. pension fund with the following performance: Is the risk-return performance of the foreign portfolio
Question:
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
Step by Step Answer:
Yes The risk that counts is the contribution of the foreign assets to the total risk of th...View the full answer
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