Question 4: This question requires students to understand the characteristics for the equity market for the US, developed (ex US) or EAFE and Emerging or EM. Monthly (continuously compounded) return data from 1998 till 2019 (till May) is available in the tab "Index Returns" in Tute7.xlxs. The textbook provides risk (volatility), return and correlation data in tables 7.4, 7.3 and 7.2 respectively. The textbook used EAFE as International but this needs to be expanded to Developed and Emerging as EM. Value and Growth indexes for US large cap, mid cap and small cap are provided as Russell 200, Russell Midcap and Russell 2000 respectively. The question requires students to create return, risk and correlation for 4 periods: (i) 1998 to 2018, (ii) 1998 to 2008, (iii) 2008 to 2018, and (iv) June 2007 to June 2009. Discuss the performance of the US market (across capitalisation and style) and the international markets, both developed and emerging over the last 20 years, and specifically during a significant market event such as the GFC.