TABLE 1. Return and Risk of Asset Classes (as of 8/30/02)

TABLE 1. Return and Risk of Asset Classes (as of 8/30/02)
Asset Class	Mutual Fund or ETF Surrogate (Ticker Symbol)	RiskGrade (Last 6 mos.)	10-Yr. Avg. Annual Return (%)	Portfolio RiskGrade of 61
Asset Class	Mutual Fund or ETF Surrogate (Ticker Symbol)	RiskGrade (Last 6 mos.)	10-Yr. Avg. Annual Return (%)	Asset/ T-Bill Ratio (%)*	Asset/ T-BillReturn (%)**
U.S. Total Stock Market	VTSMX	78	9.82	78/22	8.65
Foreign Stocks	VGTSX	89	5.68 (1)	68/32	5.3
Large-Cap Stocks	VFINX	110	10.31	55/45	7.7
REITs	VGSIX	66	12.69 (2)	92/08	12.03
Large-Cap Growth	VIGRX	116	8.93 (3)	53/47	6.85
Large-Cap Value	VIVAX	78	13.01 (4)	78/22	11.14
Small-Cap Growth	IWO	134	6.23 (5)	45/55	5.28
Small-Cap Value	IWN	101	14.82 (6)	60/40	10.69
Micro Cap	DFSCX	90	13.54	68/32	10.65
Total Bond Market	VBMFX	19	7.05	—	11.05 (7)
Gold Stocks	VGPMX	116	4.3	53/47	4.4
Cash (T-Bills)	90-Day T-Bills	0 (8)	4.5	—	—
Percentage invested in asset and percentage invested in T-bills to produce a portfolio with aRiskGrade of 61. * Return from Asset/T-Bill Portfolio with a RiskGrade of 61. (1) Used Lipper Foreign Fund category average since fund is not 10 years old. (2) Used Wilshire REIT index average since fund is not 10 years old. (3) Used Barra Large-Cap Growth index average since fund is not 10 years old. (4) Used Barra Large-Cap Value index average since fund is not 10 years old. (5) Used Russell Small-Cap Growth index average since fund is not 10 years old. (6) Used Russell Small-Cap Value index average since fund is not 10 years old. (7) For a portfolio with a RiskGrade of 61, bonds could be leveraged by a ratio of three-to-one andthe return would be increased by two times the difference between the bond yield and the marginrate (about 2%). (8) On a daily basis, T-bills have some risk, but assuming a 90-day holding period there is no risk.For those with no short-term cash needs, one-year T-bills could be used for a higher return.