Deviation, Average Return, 3 and Correlation Coefficients of International Stocks, 1980-1993 4 5 Std. Dev. (%) Average Ret. (%) 6 US 21.1 15.7 7 Germany 25.0 21.7 8 UK 23.5 18.3 9 Japan 26.6 17.3 10 Australia 27.6 14.8 11 Canada 23.4 10.5 12 France 26.6 17.2 13 14 Correlation Matrix 15 US Germany UK Japan Australia Canada France 16 US 1.00 0.37 0.53 0.26 0.43 0.73 0.44 17 Germany 0.37 1.00 0.47 0.36 0.29 0.36 0.63 18 UK 0.53 0.47 1.00 0.43 0.50 0.54 0.51 19 Japan 0.26 0.36 0.43 1.00 0.26 0.29 0.42 20 Australia 0.43 0.29 0.50 0.26 1.00 0.56 0.34 21 Canada 0.73 0.36 0.54 0.29 0.56 1.00 0.39 22 France 0.44 0.63 0.51 0.42 0.34 0.39 1.00   A B C D E F G H 27 B. Covariance Matrix: Cell Formulas 28 29 US Germany UK Japan Australia Canada France 30 US b6*b6*b16 b7*b6*c16 b8*b6*d16 b9*b6*e16 b10*b6*f16 b11*b6*g16 b12*b6*h16 31 Germany b6*b7*b17 b7*b7*c17 b8*b7*d17 b9*b7*e17 b10*b7*f17 b11*b7*g17 b12*b7*h17 32 UK b6*b8*b18 b7*b8*c18 b8*b8*d18 b9*b8*e18 b10*b8*f18 b11*b8*g18 b12*b8*h18 33 Japan b6*b9*b19 b7*b9*c19 b8*b9*d19 b9*b9*e19 b10*b9*f19 b11*b9*g19 b12*b9*h19 34 Australia b6*b10*b20 b7*b10*c20 b8*b10*d20 b9*b10*e20 b10*b10*f20 b11*b10*g20 b12*b10*h20 35 Canada b6*b11*b21 b7*b11*c21 b8*b11*d21 b9*b11*e21 b10*b11*f21 b11*b11*g21 b12*b11*h21