Exhibit 3 The Internationally-Diversified Portfolio Opportunity Set Expected Return of Portfolio,Rp DP R DP Internationally diversified portfolio opportunity set R Domestic portfolio ◆ opportunity set Expected Risk DP of Portfolio, The addition of internationally-diversified portfolios to the total opportunity set available to the investor shifts the total portfolio opportunity set left,providing lower expected risk portfolios for each level of expected portfolio return.Exhibit 3 The Internationally-Diversified Portfolio Opportunity Set Expected Return of Portfolio, Rp Expected Risk of Portfolio,)p Domestic portfolio opportunity set Internationally diversified portfolio opportunity set Rf • DP σ DP R DP The addition of internationally-diversified portfolios to the total opportunity set available to the investor shifts the total portfolio opportunity set left, providing lower expected risk portfolios for each level of expected portfolio return