56, 66 International diversification: home bias and, 137-140 strategic asset allocation, 105 International equities, portfolio risk, 14-19 International portfolio, return attribution, 319-327 Intuition, 12, 22, 34, 36, 40, 62, 87, 119,122 Investment Benchmark Reports (Venture Economics/Thomson Financial), 102 Investment Company Act of 1940, 287 Investment decision-making strategies, 10-11,22-23,29,405-406 Investment horizon, 45, 470, 541-542, 555 Investment philosophy, 399-400 Investment plan: components of, 24, 254 implementation of, 25-27 monitoring, 27 size of, see Investment plan size Investment planning, 540 Investment plan size: costs, 408, 411-412 implementation impact on risk, 408-410 separate accounts vs. commingled vehicles, 410-411 Investment program implementation: asset allocation drift, 412^14 completion management, 414-415 overview, 407 plan size, 408^12 Investment style contributions, return attribution: international portfolio, 320-322, 326-327 single region, 307 Investment styles: asset exposure, 351-353 hedge funds, 506 types of, 320-322, 326-327, 432 Investor myopia, 365-366 Japan: covariance matrix estimation applications, 234 equity market, 84, 107, 162, 165-166 global equilibrium excess returns, 57-65 global equity risk factor model, 367 government bonds, 98 optimal portfolio construction, 107 strategic asset allocation, 160 TOPIX, 101,427 Jorion, Philippe, 46, 469 J.P. Morgan Global Government Bond Index, 477 Junk bonds, 438 Labor income, 102 Laddered portfolios, 437 Large-cap stocks, 198, 364, 425-426 Leaning against the wind, 466 Least squares regression, 370 Legal risk, 27, 251 Lehman: Global Aggregate index, 98-100 Long Government and Credit Index, 115,117,124-125 U.S. Aggregate Index, 125, 444, 448 Leptokurtic distribution, 228 Leverage/leveraging: constraint, 87 global tactical asset allocation (GTAA), 476-478 implications of, 276, 450, 569 private equity investments, 518, 524 Liability analysis, in strategic asset allocation: dynamic, 125-126 modeling, 111-112, 131-133 static, 113-115 uncertainty, 110-111 Life expectancy, 566 Likelihood functions, 241, 243 Limited partners, 519 Limited partnerships, 102