An investor estimates the expected return on domestic and international stocks to be the same, but the variances are different a standard deviation of .16 for domestic stocks and .24 for international stocks. The correlation between domestic and international stocks is estimated to be .25. (a) How should a portfolio be split between domestic and international stocks to minimize portfolio variance? (b) Why doesn't variance fully describe the risk of an asset or a portfolio? Give an example. (c) Give an example of why an investor might not want to hold the market index for their stock portfolio, even if they thought it was mean-variance efficient amongst all portfolios of traded stocks and the investor was a mean-variance utility maximizer who did not believe he or she could "beat the market"?