31 The biggest source of the difference is one month (January 1999). In that month, Aracruz had a return of 133% in the Sao Paulo exchange while the ADR dropped by 9.67% in the same month. The disparity in returns can be attributed to a steep devaluation in the Brazilian Real in that month.

represent the broad spectrum of Brazilian equities. While the S&P 500 is a broader index, the returns on the ADR have little relevance to a large number of non-US investors who bought the local listing.

Deutsche Bank does not have an ADR listed in the United States but we can regress return on Deutsche against a multitude of indices. Table 4.4 presents comparisons of the results of the regressions of returns on Deutsche against three indices - a German equity index (DAX), an index of large European companies (FTSE Euro 300) and a global equity index (Morgan Stanley Capital Index (MSCI)).

Table 4.4: Deutsche Bank Risk Parameters: Index Effect
Retirement Planning For The Golden Years

Retirement Planning For The Golden Years

If mutual funds seem boring to you, there are other higher risk investment opportunities in the form of stocks. I seriously recommend studying the market carefully and completely before making the leap into stock trading but this can be quite the short-term quick profit rush that you are looking for if you am willing to risk your retirement investment for the sake of increasing your net worth. If you do choose to invest in the stock market please take the time to learn the proper procedures, the risks, and the process before diving in. If you have a financial planner and you definitely should then he or she may prove to be an exceptional resource when it comes to the practice of 'playing' the stock market.

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