PORTFOLIO DIVERSIFICATION LOWERS RISK

Portfolio Diversification Lowers Risk

30.00%
40.00%
10.00%

30.00%

Portfolio Standard Deviation

Inputs
Standard Deviation
Correlation Coefficient
International Corr Coeff

International

25.00%

20.00%

15.00%

10.00%
0

Number of Assets
Portfolio Std Dev
Minimum Std Dev
International Port Std Dev
International Min Std Dev

1
30.00%
18.97%

2
25.10%
18.97%
22.25%
15.00%

3
23.24%
18.97%

10

4
22.25%
18.97%
18.97%
15.00%

20
30
Number of Assets

5
21.63%
18.97%

40

6
21.21%
18.97%
17.75%
15.00%

50

7
20.91%
18.97%

60

s Risk

50

60

8
20.68%
18.97%
17.10%
15.00%

9
20.49%
18.97%

10
20.35%
18.97%
16.70%
15.00%

11
20.23%
18.97%

12
20.12%
18.97%
16.43%
15.00%

13
20.04%
18.97%

14
19.96%
18.97%
16.23%
15.00%

15
19.90%
18.97%

16
19.84%
18.97%
16.09%
15.00%

17
19.79%
18.97%

18
19.75%
18.97%
15.97%
15.00%

19
19.71%
18.97%

20
19.67%
18.97%
15.87%
15.00%

21
19.64%
18.97%

22
19.61%
18.97%
15.80%
15.00%

23
19.58%
18.97%

24
19.56%
18.97%
15.73%
15.00%

25
19.53%
18.97%

26
19.51%
18.97%
15.68%
15.00%

27
19.49%
18.97%

28
19.48%
18.97%
15.63%
15.00%

29
19.46%
18.97%

30
19.44%
18.97%
15.59%
15.00%

31
19.43%
18.97%

32
19.41%
18.97%
15.55%
15.00%

33
19.40%
18.97%

34
19.39%
18.97%
15.52%
15.00%

35
19.38%
18.97%

36
19.36%
18.97%
15.49%
15.00%

37
19.35%
18.97%

38
19.34%
18.97%
15.47%
15.00%

39
19.34%
18.97%

40
19.33%
18.97%
15.44%
15.00%

41
19.32%
18.97%

42
19.31%
18.97%
15.42%
15.00%

43
19.30%
18.97%

44
19.29%
18.97%
15.40%
15.00%

45
19.29%
18.97%

46
19.28%
18.97%
15.39%
15.00%

47
19.27%
18.97%

48
19.27%
18.97%
15.37%
15.00%

49
19.26%
18.97%

50
19.26%
18.97%
15.36%
15.00%

51
19.25%
18.97%

52
19.25%
18.97%
15.34%
15.00%

53
19.24%
18.97%

54
19.24%
18.97%
15.33%
15.00%

55
19.23%
18.97%

56
19.23%
18.97%
15.32%
15.00%

57
19.22%
18.97%

58
19.22%
18.97%
15.31%
15.00%

59
19.21%
18.97%

60
19.21%
18.97%
15.30%
15.00%