Annual Returns Annual Portfolio Returns (Stock Weighting at Top)

Year S&P 500 VBIIX 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
1994 1.32% -2.88% 1.32% 0.90% 0.48% 0.06% -0.36% -0.78% -1.20% -1.62% -2.04% -2.46% -2.88%
1995 37.58% 21.07% 37.58% 35.93% 34.28% 32.63% 30.98% 29.33% 27.67% 26.02% 24.37% 22.72% 21.07%
1996 22.96% 2.55% 22.96% 20.92% 18.88% 16.84% 14.80% 12.76% 10.71% 8.67% 6.63% 4.59% 2.55%
1997 33.36% 9.41% 33.36% 30.97% 28.57% 26.18% 23.78% 21.39% 18.99% 16.60% 14.20% 11.81% 9.41%
1998 28.58% 10.09% 28.58% 26.73% 24.88% 23.03% 21.18% 19.34% 17.49% 15.64% 13.79% 11.94% 10.09%
1999 21.04% -3.00% 21.04% 18.64% 16.23% 13.83% 11.42% 9.02% 6.62% 4.21% 1.81% -0.60% -3.00%
2000 -9.10% 12.78% -9.10% -6.91% -4.72% -2.54% -0.35% 1.84% 4.03% 6.22% 8.40% 10.59% 12.78%
Total Return 223.37% 58.89% 223.37% 203.98% 185.19% 167.03% 149.52% 132.69% 116.54% 101.08% 86.32% 72.25% 58.89%
Avg. Return 18.25% 6.84% 18.25% 17.21% 16.15% 15.06% 13.95% 12.82% 11.67% 10.49% 9.30% 8.08% 6.84%
Std Dev. 17.15% 8.79% 17.15% 15.75% 14.40% 13.11% 11.92% 10.85% 9.94% 9.24% 8.79% 8.64% 8.79%
Correlation 33.10%
Suppose you chose one of these stock/bond portfolios and invested $2,000 at the beginning of the year for an entire 30-
year period. How much would you have in your account at the end of this time?

Note: This period of time was unusual for its very high returns, but the differences in the totals is still instructive.

% in Stocks Total After 30 Years

100% $1,664,492.51
90% $1,351,390.46
80% $1,092,799.97
70% $880,491.76
60% $707,167.35
50% $566,430.46
40% $452,736.73
30% $361,329.20
20% $288,165.44
10% $229,841.24
0% $183,514.36
year for an entire 30-

still instructive.
 S&P 500 and VBIIX Annual Returns
50.00%

40.00%

30.00%

20.00%
Return

10.00%

0.00%

-10.00%

-20.00%
1994 1995 1996 1997 1998 1999 2000

Year
 Risk and Return of Various Stock/Bond Combinations
20.00%

All
18.00% Stocks

16.00%

14.00%

12.00%
Return

10.00%

8.00%
All
6.00% Bonds

4.00%

2.00%

0.00%
8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00%

Standard Deviation