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Following are annual return statistics for two mutual funds from Vanguard as of December 31 of each year: Vanguards Windsor Fund, an aggressive growth fund:
- Following are annual return statistics for two mutual funds from Vanguard as of December 31 of each year:
Vanguards Windsor Fund, an aggressive growth fund:
1997 22.00%; 1996 26.40%; 1995 30.10%; 1994 -0.10%
1993 19.40%; 1992 16.50%; 1991 28.60%; 1990 -15.50%
1989 15.00%; 1988 28.70%; 1987 1.20%; 1986 20.30%
1985 28.00%; 1984 19.50%
Vanguards Index 500 Fund, an S&P 500 Tracking Index Fund
1997 33.40%; 1996 23.00%; 1995 37.60%; 1994 1.30%;
1993 10.10%; 1992 7.60%; 1991 30.50%; 1990 -3.10%;
1989 31.70%; 1988 16.60%; 1987 5.30%; 1986 18.70%;
1985 31.80%; 1984 6.30%;
- Report the average return, sample standard deviation, and sample covariance of returns for the two funds.
- Report the expected portfolio return, sample variance of portfolio return, and sample standard deviation of portfolio returns based on a portfolio made up of 25% of the SP500 fund and 75% of Windsor.
- Use Excel to graph the combination of standard deviation of return (x-axis) and expected return (y-axis) from varying the percentage of Index 500 Fund in the portfolio from 0% to 100% in 10% increments.
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