Fig. 1: Annual* Inflation and Depreciation in Israel, * Dec/ Dec (-1)

Table 1: Composition of Financial Assets of Public, Excl. Common Stock (percent) * In foreign currency & linked to exchange rate.

Table 2: Required Real Returns on Principal Groups of Financial Assets (Avg ) (percent)

Fig. 2: Efficient Frontier for Four Principal Asset Price Indexes Shares CPI-indexed FX-Linked Unindexed Market Portfolio Period:

Fig. 3: Efficient Frontier for Four Principal Asset Price Indexes Shares CPI-indexed FX-Linked Unindexed Brown dots for p eriod : 1/99 – 4/02

Fig. 4: Risk Return Trade-off: Portfolios of U.S. and Foreign Mutual Funds O A C B U0U0 100% Foreign 100% U.S. Standard Deviation of Wealth Source: Lewis (1999)