Question: Which is the optimal return combination for both the US/UK and US Spain? US UK SPAIN CH13 INTERNATIONAL PORTFOLIO DIVERSIFICATION ANALYSIS ER 15% 12% 5%

Which is the optimal return combination for both the US/UK and US Spain?

US UK SPAIN CH13 INTERNATIONAL PORTFOLIO DIVERSIFICATION ANALYSIS
ER 15% 12% 5% DEVELOPED VS EMERGING MARKET DIVERSIFICATION
STD 10% 9% 4% CAN-= CAN$ rose by COL Peso fell by
CORR 1 0.33 0.06 COL-= US&CAN* $Ret= US&COL* $Ret
CV 1.5 1.3333 1.25
Weights W1 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
W2 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
US&UK ER 15.00% 14.70% 14.40% 14.10% 13.80% 13.50% 13.20% 12.90% 12.60% 12.30% 12.00%
STD 10.0% 9.34% 8.76% 8.29% 7.95% 7.75% 7.71% 7.82% 8.08% 8.48% 9.00%
US&SPAIN ER 15.00% 14.00% 13.00% 12.00% 11.00% 10.00% 9.00% 8.00% 7.00% 6.00% 5.00%
STD 10.00% 9.03% 8.09% 7.17% 6.30% 5.50% 4.79% 4.22% 3.87% 3.79% 4.00%

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