Only a good understanding of the long-term historical risk and return of various indexes will enable you to know how to allocate indexes in accordance with your own unique risk capacity. In this Step we provide you data on the risk and return characteristics of both size and value subsets of markets around the world. For some indexes, we have data going back to 1926. This summarized data is meant to give you a general overview.
In Step 10, we will be much more specific as to the various combinations of these indexes to create whole portfolios of 20 different levels of risk.