Exhibit 15 1 Portfolio Risk Reduction Through Diversification

Exhibit 15. 1 Portfolio Risk Reduction Through Diversification Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 1

Exhibit 15. 2 Portfolio Risk Reduction Through International Diversification Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2

Exhibit 15. 3 Optimal Domestic Portfolio Construction Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3

Exhibit 15. 4 The Internationally Diversified Portfolio Opportunity Set Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 4

Exhibit 15. 5 The Gains from International Portfolio Diversification Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5

Exhibit 15. 6 Alternative Portfolio Profiles Under Varying Asset Weights Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6

Exhibit 15. 7 Real Returns and Risks on the Three Major Asset Classes, Globally, 1900– 2000 Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 7

Exhibit 15. 8 Correlation Coefficients Between World Equity Markets, 1900– 2000 Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8

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) Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9

Exhibit 15. 10 Comparison of Selected Correlation Coefficients Between Stock Markets for Two Time Periods (dollar returns) Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 10

Exhibit 1 Russell/Mellon Survey of 19 Active Managers, Ending June 30, 2003 Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 11

Exhibit 2 Annual Historical Excess Returns, Annual Risk, and Sharpe Ratios for Selected Equities and Currencies, January 1978 to February 2003 Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 12