USING THE $5$ COMBINATIONS OF WEIGHTS BELOW calculate RISK AND RETURN OF ALTERNATIVE PORTFOLIO COMBINATIONS

$\backslash$table$[[$W$1($US$),$W$2($UK$),\backslash$table$[[$RETURN ON$],[$PORTFOLIO$]],\backslash$table$[[$STANDARD$],[$DEVIATION ON$],[$PORTFOLIO$]]],[\backslash$table$[[0\mathrm{.}00],[0\mathrm{.}25]],1\mathrm{.}00,,$PORTFOLIO$],[0\mathrm{.}50,\backslash$table$[[0\mathrm{.}75],[0\mathrm{.}50]],,],[\backslash$table$[[0\mathrm{.}75],[1\mathrm{.}00]],0\mathrm{.}25,,1.],[,0\mathrm{.}00,,]]$

$29$

SOLVE FOR THE OPTIMAL INTERNATIONAL PORTFOLIO USING THE FOR MULAS IN APPENDIX $15$B

$30$

$314)$ CAI CULATE RISK

CALCULATE RISK AND EXPECTED RETURN OF OIP

EXPECTED RETURN using optimal international portfolio $($OIP$)$ weights

RISK OF OIP $($SLOPE OF EFFICIENT SET$)$

CALCULATE THE EXTRA RETURN FOR A US INVESTOR INVESTING IN OIP AT THE US RISK LEVEL

Sharpe ratio$($US$)$

Sharpe ratio$($OIP$)$

EXTRA RETURN on OIP at the US risk level Sharpe