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Chapter 14. Betting on the Right Horse > Notes to Historical Return Data - Pg. 148

Betting on the Right Horse 148 Notes to Historical Return Data The return information provided on the preceding sample strategy page was determined using the following indices, as reported by Ibbotson Associates: Cash Fixed Income Stocks Aggressive Stocks 30-Day Treasury Bills Five-year (intermediate-term) government bonds S&P 500 U.S. small stocks (based upon approximately 20 percent of the smallest companies listed on the New York Stock Exchange, along with similar-sized companies traded on the American Stock Exchange and over-the-counter) Returns for all portfolios are hypothetical. The underlying investments are based upon the indices shown previously and bear no relationship to the returns of the funds in your 401(k) plan. The returns were calculated over the period from Jan- uary 1, 1950, to December 31, 2000. To produce the sample portfolios, we used the following investment mixes and rebalanced each portfolio annually: Table 14-3. Allocating Among Cash, Fixed Income, and Stock Funds Only Investment Options/Risk Profile Cash Fixed income Stocks Aggressive stocks Conservative 20% 65% 15% 0% Moderate 15% 45% 40% 0% ModeratelyAggres- sive 10% 30% 50% 10% Aggressive 0% 15% 65% 20% Table 14-4. Allocating Using a Balanced Fund Only