Amy Carter currently has money invested in a Vanguard 500 Index Fund, which is a no-load mutual fund constructed to track the performance of the S&P 500. She is trying to decide if a more active strategy should be employed instead of this passive investment strategy to save for her childrens education. Since she is very risk averse, she constructs 2 portfolios using 99% of the Vanguard 500 Index Fund and only 1% of two carefully selected stocks, Hasbro and R.J. Reynolds. Her decision on which portfolio to choose will be based on the comparisons of expected portfolio returns to required portfolio returns.