The State of South Carolina Case Solution Sample

QUESTION

Introduction:

This case analyzes the relationship between risk and return in capital markets. Using financial market data, we study the concepts of return, standard deviation, correlation, and risk, as well as the impact of forming portfolios of stocks on risk and return.

Tools

Use Excel’s statistical functions and graphics capabilities to study the data provided in the case’s Exhibits 1 and 2, which you can download from Canvas. We do not use the international data contained in Exhibit 3.

Questions:

1. [Executive Summary] Given your analysis below, provide Richard Eckstrom with some recommendations regarding the investment strategy that the State of South Carolina should adopt and how to defend it.

2. Exhibit 1 provides the annual returns for Treasury bills, Treasury bonds, corporate bonds, and common stocks over the 1926-1997 period in the United States.

(a) Using this sample, estimate the average annual return, minimum return, maximum return, and standard deviation for each asset class.

(b) Suppose that you invested one dollar in each asset class at the beginning of 1926. How much wealth would you have in each at the end of 1997?

(c) Plot the trajectories in (b) above. What does this tell you about the risk-return relationship for each asset class?

3. Exhibit 2 provides the monthly returns for 30 stocks.

(a) Estimate the average monthly return and standard deviation for each stock.

(b) Make a scatter plot for the thirty stocks with standard deviation on the x-axis and average monthly return on the y-axis. Is there an obvious relationship between these two statistics?

4. Consider equal-weighted1 and value-weighted2 portfolios (two assets each) of Exxon, General Motors, and General Electric (i.e., EX+GM, EX+GE, GE+GM), i.e., 6 portfolios in total (3 equal-weighted and 3 value-weighted).

(a) Calculate the realized returns for each of these portfolios for every month during the January 1990 to June 1998 period. Note that the weights of the value-weighted portfolios change each month.

(b) Using these realized portfolio returns, estimate the mean monthly return and standard deviation of each portfolio.

(c) Is there anything noteworthy about the standard deviation of some of these portfolios compared to those of the individual stocks? If so, why do you think this occurs?

5. Form value-weighted portfolios of one stock, five stocks, ten stocks, and thirty stocks. Start alphabetically in forming these portfolios. For example, the five-stock portfolio should contain Aluminum Company America, Allied Signal, AMEX, AT&T, and Bethlehem Steel.

(a) As before, start by calculating the realized returns for each of these portfolios for every month. Note again that the weights of the value-weighted portfolios change each month.

(b) Estimate the mean monthly return and standard deviation of each portfolio.

(c) Make a plot with standard deviation on the y-axis and number of assets of the x-axis. Describe what you see and why this should arise.

Exhibit 1

 Exhibit 1 Annual Total Returns 1926-1997 (in percent) Year Inflation Treasury Bills Treasury Bonds Corporate Bonds Common Stocks 1926 -1.49 3.27 7.77 7.37 11.62 1927 -2.08 3.12 8.93 7.44 37.49 1928 -0.97 3.56 0.1 2.84 43.61 1929 0.2 4.75 3.42 3.27 -8.42 1930 -6.03 2.41 4.66 7.98 -24.9 1931 -9.52 1.07 -5.31 -18.5 -43.34 1932 -10.3 0.96 16.84 10.82 -8.19 1933 0.51 0.3 -0.07 10.38 53.99 1934 2.03 16 10.03 13.84 -1.44 1935 2.99 0.17 4.98 9.16 47.67 1936 1.21 0.18 7.52 6.74 33.92 1937 3.1 0.31 0.23 2.75 -35.03 1938 -2.78 -0.02 5.53 6.13 31.12 1939 -0.48 0.02 4.52 3.97 -0.41 1940 0.96 0 2.96 3.39 -9.78 1941 9.72 0.06 0.93 2.73 -11.59 1942 9.29 0.27 3.22 2.6 20.34 1943 3.16 0.35 2.08 2.83 25.9 1944 2.11 0.33 2.81 4.73 19.75 1945 2.25 0.33 10.73 4.08 36.44 1946 18.16 0.35 -0.1 1.72 -8.07 1947 9.01 0.5 -2.62 -2.34 5.71 1948 2.71 0.81 3.4 4.14 5.5 1949 -1.8 1.1 6.45 3.31 18.79 1950 5.79 1.2 0.06 2.12 31.71 1951 5.87 1.49 -3.93 -2.69 24.02 1952 0.88 1.66 1.16 3.52 18.37 1953 0.62 1.82 3.64 3.41 -0.99 1954 -0.5 0.86 7.19 5.39 52.62 1955 0.37 1.57 -1.29 0.48 31.56 1956 2.86 2.46 -5.59 -6.81 6.56 1957 3.02 3.14 7.46 8.71 -10.78 1958 1.76 1.54 -6.09 -2.22 43.36 1959 1.5 2.95 -0.39 -0.97 11.96 1960 1.48 2.66 13.78 9.07 0.47 1961 0.67 2.13 0.97 4.82 26.89 1962 1.22 2.73 6.89 7.95 -8.73 1963 1.65 3.12 1.21 2.19 22.8 1964 1.19 3.54 3.51 4.77 16.48 1965 1.92 3.93 0.71 -0.46 12.45 1966 3.35 4.76 4.69 0.2 -10.06 1967 3.04 4.21 -9.18 -4.95 23.98 1968 4.72 5.21 -0.26 2.57 11.06 1969 6.11 6.58 -5.07 -8.09 -8.5 1970 5.49 6.52 12.11 18.37 4.01 1971 3.36 4.39 13.23 11.01 14.31 1972 3.41 3.84 5.69 7.26 18.98 1973 8.8 6.93 -1.11 1.14 -14.66 1974 12.2 8 4.35 -3.06 -26.47 1975 7.01 5.8 9.2 14.64 37.2 1976 4.81 5.08 16.75 18.65 23.84 1977 6.77 5.12 -0.69 1.71 -7.18 1978 9.03 7.18 -1.18 -0.07 6.56 1979 13.31 10.38 -1.23 -4.18 18.44 1980 12.4 11.24 -3.95 -2.76 32.42 1981 8.94 14.71 1.86 -1.24 -4.91 1982 3.87 10.54 40.36 42.56 21.41 1983 3.8 8.8 0.65 6.26 22.51 1984 3.95 9.85 15.48 16.86 6.27 1985 3.77 7.72 30.97 30.09 32.16 1986 1.13 6.16 24.53 19.85 18.47 1987 4.41 5.47 -2.71 -0.27 5.23 1988 4.42 6.35 9.67 10.7 16.81 1989 4.65 8.37 18.11 16.23 31.49 1990 6.11 7.81 6.18 6.78 -3.17 1991 3.06 5.6 19.3 19.89 30.55 1992 2.9 3.51 8.05 9.39 7.67 1993 2.75 2.9 18.24 13.19 9.99 1994 2.67 3.9 -7.77 -5.76 1.31 1995 2.74 5.6 31.67 27.2 37.43 1996 3.32 5.21 -0.93 1.4 23.07 1997 1.7 5.26 15.88 12.95 33.36

Exhibit 2a

 Exhibit 2 Monthly Returns for Dow 30 Stocks ALUMINUM COMPANY AMER ALLIED SIGNAL INC AMERICAN EXPRESS CO AT&T Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) 31-Jan-90 -15.8 6.59 -2.5 5.23 -14.7 14.55 -14.3 48.94 28-Feb-90 4.7 5.39 4.6 5.1 -2.1 12.41 1.9 41.95 30-Mar-90 0.8 5.64 5.3 5.27 -11.6 12.15 6.5 42.75 30-Apr-90 -3.6 5.69 -5.1 5.33 6.2 10.74 -4.5 45.18 31-May-90 6.5 5.44 5.2 5.06 7.8 11.31 7.5 43.17 29-Jun-90 -3.4 5.8 0.7 5.26 5.9 12.2 -10 46.39 31-Jul-90 9.7 5.54 -8.2 5.29 -5.3 12.82 -3.9 41.93 31-Aug-90 -7.4 6.04 -6.8 4.86 -17.2 12.14 -12.5 40.29 28-Sep-90 -2.7 5.6 -10.1 4.46 -12.4 10.06 -3.6 35.26 31-Oct-90 -14.5 5.4 -9.9 3.86 -9.6 9.77 10.1 33.62 30-Nov-90 3.3 4.58 12.2 3.48 8.6 8.73 -5.5 37.03 31-Dec-90 5 4.73 -2.7 3.84 1.7 9.48 -5.2 34.99 31-Jan-91 12.7 4.89 7.4 3.64 10.3 9.57 8.3 32.81 28-Feb-91 -0.4 5.46 4.1 3.91 5.5 10.55 2.3 35.53 28-Mar-91 2.1 5.44 -2.5 4.01 20.3 11.13 3.6 36.35 30-Apr-91 3.7 5.56 2.2 3.91 -12.6 13.41 9.1 37.41 31-May-91 5.4 5.73 2.4 3.99 2.5 11.61 -0.7 40.82 28-Jun-91 -5.1 6.03 10.5 4.02 -11.3 11.9 3.9 40.55 31-Jul-91 5.2 5.73 17.8 4.48 12.8 10.56 4.2 41.97 30-Aug-91 -1.9 5.99 -0.1 5.28 4.4 11.91 -2.2 43.75 30-Sep-91 -7.8 5.88 -5.5 5.21 -2.4 12.43 -3 42.79 31-Oct-91 -0.2 5.43 14.5 4.95 -25.9 12.04 3.7 48.97 29-Nov-91 -7.7 5.39 -5.7 5.67 0 8.93 -6.4 50.76 31-Dec-91 10 4.98 12.9 5.31 9.2 8.93 8.5 47.5 31-Jan-92 0.2 5.48 12.8 6.03 0.6 9.64 -4.8 51.1 28-Feb-92 8.2 5.49 0.8 6.8 1.8 9.7 -0.3 48.66 31-Mar-92 1.6 5.9 1.8 6.82 10.1 9.88 10.7 48.49 30-Apr-92 10.3 6 15.3 6.98 -1.6 10.8 6.1 53.86 29-May-92 0.3 6.58 0 8.05 1.1 10.62 -1.7 57.16 30-Jun-92 -2.3 6.6 -7.3 8.01 3.3 10.74 2 56.17 31-Jul-92 -2.8 6.49 3.3 7.54 -1.1 11.04 2 57.03 31-Aug-92 -11.8 6.31 -5.2 7.78 -9.2 10.92 -3.7 58.19 30-Sep-92 2.5 5.53 -0.7 7.34 6 9.91 4 56.04 30-Oct-92 5.3 5.67 6.7 7.34 -2.3 10.43 0 58.02 30-Nov-92 1.1 5.97 3.4 7.83 7 10.19 8 58.02 31-Dec-92 2.1 6.01 5.9 8.06 8.7 10.91 8.9 62.67 29-Jan-93 3.8 6.14 -4.8 8.57 -5.5 11.89 3.7 68.12 26-Feb-93 -5.2 6.37 14.8 8.16 5.4 11.11 5.7 70.62 31-Mar-93 -8 6.01 1.1 9.33 11.7 11.71 2.2 74.63 30-Apr-93 2.5 5.53 -2.1 9.45 3.2 12.97 -1.5 75.8 28-May-93 2.7 5.67 2.7 9.26 2.7 13.38 10.1 74.63 30-Jun-93 3.7 5.78 0 9.47 12.2 13.74 3 82.14 30-Jul-93 1.8 6.17 5.1 9.47 1.9 15.52 0.6 84.68 31-Aug-93 6 6.28 7 9.95 -0.4 15.7 -0.8 85.19 30-Sep-93 -10.6 6.62 -2.5 10.61 10.4 15.64 -5.8 84.51 29-Oct-93 1.3 5.92 -1.7 10.28 -9.4 17.42 -2.3 79.34 30-Nov-93 2.4 6 -0.3 10.1 -2.7 15.66 -5 77.49 31-Dec-93 0.2 6.11 11.1 10.08 -1.6 15.23 -3.3 73.76 31-Jan-94 14.6 6.13 -0.5 11.19 6.5 15.08 8.1 70.89 28-Feb-94 -4.9 6.99 -2.5 11.14 -10.3 15.94 -7.5 76.63 31-Mar-94 -4.8 6.65 -4.4 10.34 -5.1 14.29 -1.8 70.89 29-Apr-94 -5.1 6.33 -5.5 10.36 7.7 13.56 0 69.31 31-May-94 4.4 6.01 2.3 9.79 5.4 14.51 6.6 69.31 30-Jun-94 3.5 6.24 -1.4 9.97 -6.8 13.53 0.1 73.87 29-Jul-94 7 6.5 10.5 9.85 3.8 12.74 0.5 73.82 31-Aug-94 7.9 6.95 -1.9 10.88 6.1 13.11 0 74.16 30-Sep-94 0.9 7.46 -8.7 10.63 8 13.91 -0.5 74.16 31-Oct-94 1.1 7.54 1.5 9.65 2.4 15.03 1.9 84.75 30-Nov-94 -4.3 7.58 -5.3 9.79 -4 15.28 -10.7 86.29 30-Dec-94 6.1 7.29 4.2 9.23 0.3 15.02 3 76.78 31-Jan-95 -9 7.74 5.1 9.62 6.8 14.95 -0.7 78.54 28-Feb-95 -0.8 7.02 6.5 10.12 6.7 15.97 3.5 77.96 31-Mar-95 6.4 6.97 3.6 10.72 3.7 17.04 0.9 80.69 28-Apr-95 8.1 7.42 1 11.11 0.3 17.29 -1.9 81.2 31-May-95 4.1 8.03 2.4 11.22 2.2 17.23 0 79.63 30-Jun-95 7.8 8.28 10.2 11.48 -0.7 17.6 5.1 80.3 31-Jul-95 13.7 8.93 5.1 12.65 9.9 17.48 -0.5 83.86 31-Aug-95 0.6 10.15 -4.7 13.29 4.9 19.09 7.3 83.46 29-Sep-95 -7.4 10.2 -0.6 12.57 9.9 19.69 16.7 89.83 31-Oct-95 -3.5 9.44 -3.7 12.49 -7.9 21.64 -2.7 104.3 30-Nov-95 15.1 9.1 11.9 12.03 4.6 19.81 2.9 101.53 29-Dec-95 -9.6 10.37 0.3 13.4 -2.6 20.59 -1.2 104.86 31-Jan-96 5.6 9.37 5 13.44 11.7 20.04 3.3 103.07 29-Feb-96 2.5 9.84 12 14.11 -0.3 22.28 -4.9 106.46 29-Mar-96 10.1 10.08 6.3 15.73 7.6 22.22 -3.4 101.28 30-Apr-96 -0.4 10.96 -1.9 16.72 -1.3 23.85 0.2 97.72 31-May-96 -0.7 10.92 -5.2 16.4 -5.7 23.43 1.8 97.92 28-Jun-96 -6.9 10.83 4.3 15.48 -2.5 22.1 -0.1 99.72 31-Jul-96 1.7 10.08 2.8 16.15 -1.5 21.56 -15.7 99.63 30-Aug-96 7.1 10.19 5.5 16.61 0 20.93 0.5 83.96 30-Sep-96 -5 10.82 6.7 17.46 5.7 20.93 0.2 84.36 31-Oct-96 -0.1 10.27 -0.6 18.63 2.1 21.94 -8.5 84.25 29-Nov-96 8.5 10.21 12.2 18.52 11.2 22.29 12.1 56.66 31-Dec-96 0.2 11.03 -8.5 20.71 8.6 24.78 11.4 63.54 31-Jan-97 8.2 11.05 5 18.95 10 26.77 -4.7 70.28 28-Feb-97 3.6 11.96 3 19.9 5.6 29.44 1.3 63.8 31-Mar-97 -4.6 12.35 -1.4 20.43 -8.8 31.1 -11.7 64.61 30-Apr-97 3.1 11.75 1.4 20.15 10.2 28.37 -3.9 56.51 30-May-97 5.4 12.07 6.6 20.43 5.7 31.16 9.7 54.43 30-Jun-97 2.4 12.78 9.4 21.72 7.2 32.86 -3.7 59.71 31-Jul-97 17.4 13.09 9.8 23.77 12.7 35.09 5 56.97 29-Aug-97 -6.8 15.37 -10.2 26.11 -7.2 39.45 5.9 59.81 30-Sep-97 -0.3 14.31 3 23.37 5.3 36.45 14.3 63.35 31-Oct-97 -11 14.26 -15.3 24.05 -4.5 38.38 10.5 71.88 28-Nov-97 -7.5 12.7 3.5 20.37 1.1 36.57 14.3 79.39 31-Dec-97 4.6 11.6 4.5 20.94 13.4 36.98 10.3 90.76 30-Jan-98 8.5 12.14 0.3 21.89 -6.2 41.48 2.1 99.59 27-Feb-98 -3.6 13.17 9.7 21.97 7.6 38.9 -2.6 101.72 31-Mar-98 -6.2 12.66 -1.3 24.09 1.9 41.86 8.3 99.08 30-Apr-98 12.6 11.57 4.3 23.85 11.5 42.7 -8.6 106.54 29-May-98 -10.2 13.05 -2.1 24.88 0.4 47.52 1.2 97.43 30-Jun-98 -5 11.68 3.8 24.28 11.1 47.33 -5.6 98.87

Exhibit 2b

 Exhibit 2 Monthly Returns for Dow 30 Stocks BETHLEHEM STEEL CORP BOEING CO CHEVRON CORP COCA COLA CO Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) 31-Jan-90 -2.7 1.39 -0.2 13.68 -1.3 23.18 -10.8 26.37 28-Feb-90 -2.2 1.35 8.3 13.65 1.4 22.88 2.4 23.51 30-Mar-90 12.1 1.31 12.3 14.72 0.6 22.96 6.6 24.06 30-Apr-90 -17.2 1.47 -2.8 16.53 -2.4 23.09 2 25.19 31-May-90 9.1 1.22 19 16.07 7.3 22.54 18.4 25.7 29-Jun-90 -8.5 1.32 6.2 20.22 0.5 23.95 -1.2 30.42 31-Jul-90 -15.5 1.21 -1.3 20.23 13.9 24.95 2.3 29.58 31-Aug-90 -11.2 1.02 -16 19.97 -4.4 28.14 -6.9 30.25 28-Sep-90 0 0.9 -13.7 16.69 -2.5 26.9 -6 28.16 31-Oct-90 -5.2 0.91 7.5 14.42 -7.9 26.16 13.6 26.37 30-Nov-90 4.2 0.86 -0.6 15.51 3.7 24.08 3.5 29.96 31-Dec-90 25.5 0.89 2.5 15.33 3.9 24.7 0.5 30.87 31-Jan-91 0.8 1.12 8.8 15.58 -1.7 25.66 4.8 31.05 28-Feb-91 9.1 1.13 -1.8 16.96 6.5 25.22 7.4 32.55 28-Mar-91 -14.7 1.22 -2.6 16.57 2.3 26.59 4 34.97 30-Apr-91 0.9 1.04 -2.7 16.14 1.6 27.21 -2.8 36.23 31-May-91 15.1 1.05 7.4 15.71 -4.5 27.34 8.5 35.22 28-Jun-91 1.6 1.2 -6.4 16.79 -4.7 26.1 -4.4 38.23 31-Jul-91 11.6 1.22 1.4 15.73 2.5 24.69 10.3 36.38 30-Aug-91 -0.1 1.37 7.8 15.94 0.6 25.31 9.4 40.13 30-Sep-91 -5.6 1.36 2 17.1 2.4 25.17 -1.5 43.89 31-Oct-91 -9.6 1.29 -3 17.43 1.7 25.77 3.3 42.98 29-Nov-91 -25.6 1.16 -9.6 16.92 -9.6 26.21 4.5 44.4 31-Dec-91 24.4 0.86 7.9 15.2 3.4 23.4 15.7 46.23 31-Jan-92 3.6 1.07 6.5 16.39 -7.8 24.14 -3.4 53.36 28-Feb-92 2.6 1.11 -9.1 17.46 -1.8 22.26 5.5 51.53 31-Mar-92 -0.8 1.13 -4.6 15.79 3.9 21.56 0.3 54.36 30-Apr-92 -1.7 1.12 0.3 15.06 9 22.39 1.5 54.32 29-May-92 -2.6 1.11 0.3 15.1 3.5 24.4 6 55.15 30-Jun-92 7.1 1.08 -9.1 15.06 -6.1 24.97 -8.8 58.47 31-Jul-92 -8.3 1.16 0.3 13.61 6.5 23.23 4.7 52.7 31-Aug-92 -13.5 1.06 -6.3 13.65 4.1 24.75 2.7 55.17 30-Sep-92 -3.1 0.92 -1.3 12.71 0.9 25.48 -5.5 56.66 30-Oct-92 7.5 1.05 -2 12.47 -4.2 25.3 0.3 53.21 30-Nov-92 23 1.13 -1.7 12.21 -2 24.23 -1.8 53.38 31-Dec-92 4.1 1.39 14.2 11.92 1.1 23.47 5.3 52.23 29-Jan-93 18 1.45 -12.2 13.62 4.7 23.69 1.2 54.85 26-Feb-93 -9.9 1.71 -1.8 11.96 7 24.8 0 55.51 31-Mar-93 3.7 1.54 1.8 11.66 8 26.25 1 55.51 30-Apr-93 11.3 1.59 8.6 11.88 3.6 28.34 -7.6 55.7 28-May-93 -1.3 1.78 4.9 12.89 3.3 29.36 5.4 51.45 30-Jun-93 -3.2 1.75 -6.6 13.45 -0.4 30.04 4 54.23 30-Jul-93 -22.7 1.7 6.4 12.57 0.7 28.54 0.6 56.19 31-Aug-93 -6.9 1.31 1.3 13.37 6.4 28.75 0.3 56.52 30-Sep-93 6.5 1.22 -3.2 13.46 5 30.29 -2.2 56.68 29-Oct-93 15.7 1.31 -2.3 13.04 -0.8 31.82 2.7 54.94 30-Nov-93 4.5 1.51 3.7 12.74 -9.5 31.57 -2.8 56.41 31-Dec-93 17.3 1.58 12 13.12 0.3 28.28 6.3 54.62 31-Jan-94 14.7 1.86 0 14.69 7.2 28.37 -8.4 57.96 28-Feb-94 -7 2.13 8.7 14.69 -6.2 30.41 4.3 53.09 31-Mar-94 -8.6 1.99 -4.8 15.88 -3 28.21 -4.2 55.36 29-Apr-94 1.3 2.12 1.1 15.12 6 27.35 2.8 52.71 31-May-94 -4.3 2.14 3.6 15.31 -1.2 28.98 -3.6 54.17 30-Jun-94 -3.2 2.05 -0.3 15.79 -3.7 27.28 1.4 52.22 29-Jul-94 19.5 1.98 -3.5 15.75 6 27.29 9.2 52.54 31-Aug-94 3.4 2.43 2.5 15.19 -3.5 28.92 3.7 57.39 30-Sep-94 -8.7 2.51 -4.9 15.5 -1.8 27.61 6.1 59.49 31-Oct-94 -8.9 2.29 1.4 14.74 8.1 27.13 3.6 62.71 30-Nov-94 -7.2 2.09 2.8 14.95 -2 29.33 1.9 64.97 30-Dec-94 1.4 1.95 4.7 15.29 2.3 28.43 0.7 65.73 31-Jan-95 -13.2 1.98 -5.3 16.02 0 29.08 1.9 66.22 28-Feb-95 0.8 1.72 4.2 15.16 7.8 29.08 4.8 67.5 31-Mar-95 2.4 1.73 16.5 15.72 0.8 31.04 2.9 70.72 28-Apr-95 -12.4 1.77 2.3 18.33 -1.3 31.28 3.1 71.73 31-May-95 4.4 1.55 7.5 18.75 4.7 30.87 6 73.96 30-Jun-95 10.2 1.62 6.4 20.11 -5.6 32.02 3.8 78.11 31-Jul-95 -3.1 1.79 7 21.39 6.5 30.24 2.9 80.8 31-Aug-95 -7.1 1.73 -4.1 22.88 -1 32.19 -2.1 83.18 29-Sep-95 -3.4 1.62 6.6 21.92 0.8 31.54 7.7 81.44 31-Oct-95 -7.1 1.56 -4 23.37 -4.1 31.79 4.2 87.02 30-Nov-95 6.7 1.45 11.6 22.43 6.7 30.48 5.7 90.65 29-Dec-95 -0.9 1.58 7.5 25.01 6.1 32.2 -2 95.02 31-Jan-96 9 1.56 -1.1 26.89 -1 34.16 1.5 93.14 29-Feb-96 -9.1 1.7 5 26.59 8.2 33.83 7.1 94.55 29-Mar-96 -4.5 1.55 6.8 27.84 0.9 36.28 2.8 101.29 30-Apr-96 4.8 1.48 -5.2 29.84 3.3 36.61 -1.5 103.5 31-May-96 -7.3 1.52 4.1 28.29 3.9 37.85 12.9 101.94 28-Jun-96 -6.9 1.41 2.2 29.37 -1.3 39 6.8 115.07 31-Jul-96 -14.7 1.32 1.6 30.15 -1.9 38.51 -4.3 122.31 30-Aug-96 1.2 1.12 2.6 30.63 2.7 37.77 7.2 117 30-Sep-96 -2.4 1.14 4.4 31.54 6.4 38.43 1.5 125.43 31-Oct-96 -18.8 1.11 0.9 32.93 5 40.88 -0.7 126.83 29-Nov-96 10.8 0.91 4.5 33.24 2.7 42.92 1.5 125.9 31-Dec-96 -1.4 1 7.2 34.63 -3 43.73 2.9 127.45 31-Jan-97 -5.6 0.99 0.6 37.19 2.1 42.41 10 130.94 28-Feb-97 -1.5 0.94 -4.8 37.4 -2 43.3 5.4 144 31-Mar-97 0 0.92 -3.1 36.46 7.9 42.08 -8.4 151.78 30-Apr-97 0 0.92 0 35.56 -1.6 45.42 14.1 138.71 30-May-97 21.2 0.92 7.1 35.56 3 44.75 7.7 158.31 30-Jun-97 4.4 1.12 0.7 38.26 5.6 45.74 -0.5 169.81 31-Jul-97 7.8 1.17 10.6 38.25 6.8 48.32 1.7 168.57 29-Aug-97 6.7 1.26 -6.9 40.8 -1.2 51.62 -17.1 171.36 30-Sep-97 -14.1 1.35 -0.1 54.57 7.3 50.7 6.7 142.15 31-Oct-97 -3 1.16 -11.8 54.51 -0.2 54.38 -7.2 151.3 28-Nov-97 2.5 1.13 11 48.06 -2.6 54.3 10.6 140.45 31-Dec-97 -15.2 1.16 -7.9 53.19 -4 52.66 6.7 154.58 30-Jan-98 13.7 0.98 -2.7 48.92 -2.9 50.57 -2.9 164.93 27-Feb-98 7.6 1.11 14.2 47.61 9 49.09 6 160.14 31-Mar-98 27.6 1.2 -3.9 54.23 -0.7 53.11 13.1 169.72 30-Apr-98 14.7 1.53 -4 50.74 3 52.48 -2 191.38 29-May-98 -21.3 1.76 -4.3 48.73 -2.7 54.03 3.3 187.52 30-Jun-98 1.5 1.39 -6.7 48.24 4.9 52.24 9.3 193.53

Exhibit 2c

 Exhibit 2 Monthly Returns for Dow 30 Stocks DU PONT EASTMAN KODAK CO EXXON CORP GENERAL ELECTRIC CO GENERAL MOTORS CORP Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) 31-Jan-90 -7.6 28.77 -7.3 13.34 -6 62.58 -3.5 58.2 -1.5 25.44 28-Feb-90 4.7 26.58 0 12.37 1.3 58.83 0 56.17 9.6 25.06 30-Mar-90 -2.2 27.54 4 12.21 -1.9 58.83 4 55.72 2.2 27.02 30-Apr-90 -2.9 26.36 -5.8 12.69 -1.9 57.66 -0.4 57.75 -3.5 27.62 31-May-90 8.1 25.59 10.5 11.96 7.4 56.56 8.4 57.52 11.6 26.64 29-Jun-90 -3.4 27.39 0.6 13.06 -0.3 60 0.5 61.9 -2.1 29.28 31-Jul-90 7.8 26.12 -5.9 13.15 8.4 59.84 3.4 62.13 -2.1 28.67 31-Aug-90 -12.3 28.15 6.9 12.37 -2.5 64.84 -13.4 64.26 -13.1 28.07 28-Sep-90 -5.9 24.42 -4.3 13.06 -2 62.5 -11.3 55.62 -8.8 23.93 31-Oct-90 -2.2 22.88 3.2 12.49 0 61.11 -4.6 48.43 1.4 21.82 30-Nov-90 12.6 22.38 7.9 12.9 4.7 61.11 5.3 46.21 1.4 22.12 31-Dec-90 -0.3 24.91 -1.8 13.75 2.2 63.13 5.7 48.65 -5.8 21.97 31-Jan-91 -1.4 24.64 2.4 13.51 -0.2 64.49 11.5 50.34 5.5 20.63 28-Feb-91 5 24.3 3.8 13.83 8.1 64.33 7 56.16 10.1 21.75 28-Mar-91 -1.3 25.23 -0.3 14.2 6.1 68.7 2.4 59.67 -4.4 23.7 30-Apr-91 12.1 24.89 -4.6 14.15 1.7 72.83 1.6 61.09 -5.3 22.86 31-May-91 14.5 27.91 3 13.51 -1 74.08 9.9 62.08 21.7 21.65 28-Jun-91 -2.9 31.68 -8.6 13.75 -0.2 72.52 -4.2 67.78 -5.5 26.12 31-Jul-91 6.5 30.76 5.8 12.57 2.2 72.35 -1 64.42 -2.5 24.95 30-Aug-91 -0.4 32.77 6.4 13.31 -0.8 73.91 2.2 63.77 -3.4 24.33 30-Sep-91 -6.5 32.35 -1.2 13.99 2.1 72.51 -6.7 65.19 -1.6 23.26 31-Oct-91 5.5 30.28 5.9 13.83 2.5 74.01 -0.5 60.37 -6 23 29-Nov-91 -5.9 31.96 4.4 14.65 -2.8 75.87 -6.2 60.05 -11.3 21.61 31-Dec-91 5.1 29.77 3.5 15.13 3.8 72.92 19 56.35 -6.1 18.92 31-Jan-92 -0.3 31.29 4.7 15.67 -4.3 75.65 -1.6 66.29 12.1 17.78 28-Feb-92 0.4 31.21 -10.6 16.4 -0.8 72.39 4.5 65.21 17.1 19.94 31-Mar-92 3 31.04 -9 14.49 -4.2 70.99 -3 68.14 -2.3 23.09 30-Apr-92 13.9 31.96 -2.5 13.2 9.6 68 1.2 65.46 13.3 22.55 29-May-92 -2 36.41 1.9 12.88 2.2 74.52 -0.3 66.21 -3.9 25.56 30-Jun-92 -4.3 35.4 0.6 12.96 2.1 75.3 2.5 66 11.3 24.55 31-Jul-92 6.2 33.98 8.4 13.04 2.6 76.85 -1.6 66.72 -5.4 30.23 31-Aug-92 -7.1 36.08 2.9 14.14 2.3 78.87 -3.3 65.64 -15.9 28.6 30-Sep-92 -4.6 33.22 0.6 14.38 -0.6 79.8 6.5 63.5 -7.2 23.79 30-Oct-92 2.7 31.71 -8.1 14.46 -4.1 79.3 -1.9 66.85 -4.3 22.15 30-Nov-92 0.4 32.55 3.7 13.29 -1.7 76.04 8.5 65.57 5.5 21.2 31-Dec-92 -2.1 32.38 -3.3 13.61 2.7 73.87 3.5 71.12 0 22.24 29-Jan-93 -2.9 31.78 23.1 13.17 0 75.88 0.7 73.02 17.1 22.74 26-Feb-93 2.3 30.86 8.5 16.22 5.3 75.88 -2.3 73.55 -0.8 26.62 31-Mar-93 4 31.28 1.2 17.44 3.9 78.99 6.7 71.85 1 26.27 30-Apr-93 8 32.54 -10.1 17.64 -0.2 82.13 1.7 76.12 8.6 26.53 28-May-93 2 35.16 7.2 15.85 0.3 81.97 2.3 77.4 -1.3 28.83 30-Jun-93 -10.7 35.58 -3.4 16.83 1 81.35 3.9 79.21 10.9 28.3 30-Jul-93 -0.5 31.81 7.3 16.38 -0.8 82.13 2.9 81.83 9 31.45 31-Aug-93 4.7 31.64 14.7 17.57 0.7 81.51 -0.3 84.18 -2.9 34.28 30-Sep-93 -4.4 32.82 -2.7 19.98 0.2 81.2 -1.8 83.96 -10.9 33.13 29-Oct-93 2.4 31.48 5.9 19.47 -0.2 81.33 1.2 81.89 14.1 29.55 30-Nov-93 1.2 32.24 -2.4 20.62 -2.9 81.18 1.4 82.85 11.2 33.71 31-Dec-93 1 32.33 -7.6 20.06 0.6 77.91 7.3 84.03 4 37.33 31-Jan-94 16.3 32.68 -2.3 18.54 5.3 78.38 2.7 89.45 11.6 38.99 28-Feb-94 -4.3 38.01 -1.6 14.54 -1.4 82.57 -2.2 91.9 -4.6 43.52 31-Mar-94 -0.5 36.07 3.2 14.17 -3.1 80.55 -4.4 89.88 -7.5 41.39 29-Apr-94 7.8 35.9 -6.5 14.67 0 78.09 -4.8 85.38 5.3 38.28 31-May-94 9.3 38.69 13.9 13.72 -1.6 78.09 4.5 81.33 -4.9 41.25 30-Jun-94 -6 42.08 2.7 15.5 -7.2 75.92 -5.6 84.96 -6.5 39.07 29-Jul-94 1.9 39.59 0.5 15.91 4.8 70.47 8 79.75 2.2 37.42 31-Aug-94 2.7 40.36 3.7 16.09 1.2 73.89 -1.2 86.16 -1.8 38.26 30-Sep-94 -4.1 41.12 4 16.55 -3.4 73.89 -2.5 85.19 -6.7 37.42 31-Oct-94 2.8 39.47 -7 17.55 9.3 71.38 1.6 82.41 -15.7 35.16 30-Nov-94 -8.9 40.58 -4.6 16.32 -2.8 78.05 -5.9 83.69 -3 29.63 30-Dec-94 4.2 36.68 4.9 15.43 0.6 74.95 11.8 78.64 10.5 28.73 31-Jan-95 -5.1 38.22 2.6 16.22 2.9 75.42 1 87.19 -7.7 31.74 28-Feb-95 6.3 36.26 4.9 16.64 3.4 77.59 6.3 88.05 10.2 29.29 31-Mar-95 7.8 38.22 4.4 17.32 4.3 79.3 -0.6 93.6 3.2 32.12 28-Apr-95 8.9 41.22 8 18.09 4.3 82.73 3.7 92.32 2.6 33.16 31-May-95 3.8 34.6 5.7 19.54 3.8 86.3 3.6 95.74 7 34.04 30-Jun-95 1.3 37.51 0.4 20.55 -1.1 88.63 -2.1 98.4 -2.3 36.21 31-Jul-95 -2.5 37.38 -4.9 20.63 2.7 87.73 4.7 95.49 4 35.04 31-Aug-95 -1.6 36.43 0.9 19.61 -4.1 90.06 -0.2 99.94 -2.7 36.44 29-Sep-95 5.2 36.28 2.6 19.74 5.1 85.4 9 99.73 -0.5 35.22 31-Oct-95 -9.3 38.15 5.7 20.25 5.7 89.72 -0.8 107.25 -6.7 35.03 30-Nov-95 7.4 34.62 9.6 21.41 2.3 94.84 6.1 106.41 11.5 32.7 29-Dec-95 5.1 36.93 -1.8 23.33 4.8 96.08 7.9 112.12 9 36.35 31-Jan-96 9.8 38.8 9.5 22.92 -1.1 100.73 6.6 120.26 -0.5 39.62 29-Feb-96 0.4 42.62 -2 25.1 0 99.64 -1.6 128.19 -1.9 39.44 29-Mar-96 8.5 42.48 -0.7 24.46 2.5 98.71 3.8 126.11 3.9 38.41 30-Apr-96 -3.3 46.09 7.7 24.56 4.3 101.23 -0.8 130.07 1.9 39.91 31-May-96 0.1 44.86 -2.3 26.46 0.6 105.58 7.1 128.43 2.4 41.01 28-Jun-96 -0.8 44.7 4.5 25.73 2.5 105.27 4.8 137.57 -5 41.67 31-Jul-96 2.1 44.35 -4 26.89 -5.3 107.91 -4.7 144.22 -6.9 39.59 30-Aug-96 2.4 45.26 -2.3 25.34 0 102.16 1.1 136.51 2.6 36.85 30-Sep-96 7.3 46.08 8.3 24.43 2.1 101.23 10 137.97 -3.3 37.51 31-Oct-96 5.2 49.44 1.4 26.45 6.5 103.38 6.3 150.26 11.7 36.28 29-Nov-96 2.2 52.04 2.4 26.83 7.4 110.06 7.5 159.76 8.2 40.54 31-Dec-96 -0.1 53.06 -1.1 27.03 3.8 117.19 -4.4 171.73 -3.3 43.56 31-Jan-97 16.5 52.99 8.1 26.74 5.7 121.69 4.7 162.79 5.8 42.15 28-Feb-97 -1.6 61.72 4 28.91 -2.5 128.68 -0.6 170.4 -1.1 44.61 31-Mar-97 -1.2 60.38 -15.3 29.91 7.5 124.49 -3 169.38 -4.3 43.75 30-Apr-97 0.1 59.68 9.4 25.22 5.1 133.84 11.8 163.41 4.5 41.16 30-May-97 2.9 60.03 0.2 27.58 5.4 140.68 8.8 198.05 0 43.01 30-Jun-97 15.8 71.14 -7.4 27.5 3.4 147.12 7.7 197.21 -2.8 42.64 31-Jul-97 6.7 70.98 -12.7 25.25 4.9 152.09 8.3 212.31 11 40.65 29-Aug-97 -6.6 75.71 -1.8 22.04 -4.1 159.53 -10.8 229.03 2.2 45.11 30-Sep-97 -1.2 70.35 -0.7 21.3 4.7 151.4 9.2 204.34 6.7 45.19 31-Oct-97 -7.6 69.5 -7.8 21.16 -4.1 158.52 -5.1 222.3 -4.1 48.21 28-Nov-97 7 64.32 2 19.51 0 152.02 14.3 211.5 -4.3 46.23 31-Dec-97 -0.8 68.49 -0.1 19.75 0.3 150.42 -0.3 241.77 5.8 43.89 30-Jan-98 -5.7 67.92 7.7 19.68 -3.1 150.88 5.6 240.14 -4.6 42.97 27-Feb-98 8.8 64.03 1.2 21.2 8.2 146.26 0.3 253.64 19.8 40.98 31-Mar-98 10.9 69.34 -1.1 21.32 6.1 157.2 11.2 254.45 -1.7 48.76 30-Apr-98 7.1 76.54 11.3 20.97 8 165.66 -1.2 281.01 -0.6 45.97 29-May-98 6.5 81.96 -0.5 23.33 -2.9 178.98 -2.1 277.75 7.4 45.72 30-Jun-98 -3.2 87.11 2.4 23.03 1.2 172.5 9 271.64 -7 48.04

Exhibit 2d

 Exhibit 2 Monthly Returns for Dow 30 Stocks GOODYEAR TIRE & RUBR CO INT BUSINESS MACHS CORP INTERNATIONAL PAPER CO NAVISTAR INT CORP MCDONALDS CORP Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) 31-Jan-90 -17.2 2.51 4.8 54.48 -10.6 6.15 0 0.97 -5.4 12.76 28-Feb-90 -5 2.08 6.6 57.09 0.8 5.5 -9.7 0.97 -3.2 12.07 30-Mar-90 5.9 1.95 2.2 60.13 0 5.5 17.9 0.88 0.8 11.65 30-Apr-90 -1 2.07 2.7 60.99 -1.7 5.49 -6.1 1.04 -4.7 11.75 31-May-90 2.3 2.04 11.2 62.64 6.6 5.39 6.5 0.98 14.7 11.19 29-Jun-90 -15.7 2.07 -2.1 68.96 -3.1 5.71 0 1.04 2.5 12.81 31-Jul-90 -12 1.74 -5.1 67.53 10.8 5.53 -9.1 1.04 -11.6 12.85 31-Aug-90 -12.5 1.53 -7.5 64.08 -14.8 6.13 -16.7 0.94 -10.9 11.36 28-Sep-90 -25.3 1.32 4.4 58.55 -8.7 5.18 -16 0.79 -6.7 10.09 31-Oct-90 -10.3 0.99 -0.9 60.94 6.9 4.75 -19 0.66 -2.9 9.32 30-Nov-90 7.9 0.89 9 60.36 6.8 5.08 -5.9 0.53 11.7 9.05 31-Dec-90 18 0.93 -0.6 65.09 8.6 5.38 12.5 0.5 3.6 10.08 31-Jan-91 7.3 1.1 12.2 64.53 10 5.86 27.8 0.56 -2.1 10.45 28-Feb-91 2.3 1.18 2.5 72.38 5 6.45 21.7 0.72 11 10.23 28-Mar-91 14.5 1.2 -11.6 73.52 -0.6 6.72 10.7 0.88 10.2 11.35 30-Apr-91 -10.1 1.38 -9.6 65.07 3.1 6.68 -6.5 0.97 -3.6 12.47 31-May-91 24 1.24 4.2 58.85 13 6.88 3.4 0.91 4.8 12.02 28-Jun-91 26.7 1.54 -8.5 60.64 -0.2 7.73 -6.7 0.94 -6.1 12.56 31-Jul-91 14.7 1.95 4.2 55.5 -1.4 7.73 -10.7 0.88 -0.4 11.81 30-Aug-91 0.6 2.23 -3.1 57.85 0.8 7.62 0 0.78 -0.1 11.76 30-Sep-91 14.7 2.24 7 55.35 -2.2 7.64 -4 0.78 7.3 11.72 31-Oct-91 14 2.57 -5.2 59.29 11.6 7.55 -8.3 0.75 -0.7 12.5 29-Nov-91 -4.1 2.93 -4.6 56.21 -11.6 8.43 0 0.69 -3 12.41 31-Dec-91 11.7 3.77 -3.8 52.92 6 7.4 -4.5 0.69 13 12.01 31-Jan-92 12.9 3.78 1.1 50.87 2.1 7.86 23.8 0.66 14.5 13.57 28-Feb-92 6.8 4.26 -2.1 51.44 2.8 8.02 23.1 0.81 -6.7 15.54 31-Mar-92 1.4 4.55 -3.9 49.66 -0.3 8.21 -9.4 1 -1.5 14.46 30-Apr-92 11.3 4.61 8.7 47.73 1.2 8.77 -10.3 0.91 11.3 14.24 29-May-92 -2.1 5.13 1.3 51.87 -4.8 8.87 -11.5 0.81 5.9 15.85 30-Jun-92 -3.3 5.02 7.9 51.87 -0.9 8.39 -8.7 0.72 -1.9 16.74 31-Jul-92 -0.9 4.87 -3.2 55.86 -4.5 8.53 0 0.66 -4.6 16.54 31-Aug-92 -7 4.82 -7.3 54.08 -6.1 8.14 -28.6 0.66 -2.9 15.78 30-Sep-92 -3.4 4.48 -6.8 49.44 2.6 7.6 13.3 0.47 4.4 15.28 30-Oct-92 13.1 4.37 -17.2 46.09 1.4 7.79 -11.8 0.53 3.4 15.98 30-Nov-92 4.5 4.94 3.9 38.17 1.4 7.9 6.7 0.47 7 16.52 31-Dec-92 -4.9 5.15 -26.2 38.95 2.1 7.96 12.5 0.5 -0.5 17.65 29-Jan-93 -0.5 4.9 2.2 28.77 -3.2 8.15 33.3 0.57 -0.3 17.74 26-Feb-93 -0.7 4.87 6.6 29.41 0.3 7.89 -4.2 0.76 4.3 17.69 31-Mar-93 11.3 4.82 -6.4 31.05 -2.7 7.86 -13 0.73 4.4 18.42 30-Apr-93 -0.3 5.37 -4.4 29.08 5.2 7.65 0 0.59 -9 19.24 28-May-93 6.9 5.7 9.6 27.8 2.2 8.05 10 0.59 3.4 17.51 30-Jun-93 6.9 5.7 -6.4 30.15 -4.1 8.17 -9.1 0.64 -1 18.1 30-Jul-93 -1.8 6.18 -9.9 28.22 -0.4 7.85 6.5 0.64 4.8 17.8 31-Aug-93 2.2 6.07 3.4 25.44 2.8 7.82 -10.3 0.68 4.6 18.67 30-Sep-93 2.6 6.18 -8.2 26.15 -7.5 7.99 -0.5 1.22 -3.5 19.48 29-Oct-93 2.6 6.38 9.5 23.98 -1.2 7.43 14.2 1.21 11.1 18.34 30-Nov-93 -0.2 6.55 17.7 26.27 12.9 7.34 -7.4 1.39 1.9 20.37 31-Dec-93 2.8 6.51 4.9 30.77 1.5 8.24 -6 1.29 -2.8 20.73 31-Jan-94 5.7 6.86 0 32.68 10.9 8.37 10.1 1.21 6.6 20.12 28-Feb-94 -6.2 7.26 -6 32.68 -2.8 9.28 -7.2 1.9 0 21.45 31-Mar-94 -10.5 6.79 3.3 30.58 -6.5 8.97 -7.8 1.81 -6.2 21.4 29-Apr-94 -3.7 6.08 5.3 31.6 -3.9 8.39 -15.2 1.67 5.5 20.08 31-May-94 -0.1 5.87 10 33.26 6.8 8.08 -11.9 1.42 3.3 21.18 30-Jun-94 -7.1 5.83 -6.7 36.63 -4.3 8.58 -19.5 1.25 -6.7 21.94 29-Jul-94 -1 5.44 5.3 34.26 10 8.26 -2.8 1 -6.1 20.44 31-Aug-94 -1.2 5.39 11.1 36.08 6.4 9.08 26 0.98 4.4 19.2 30-Sep-94 -4.6 5.3 1.6 39.94 1.8 9.61 -15.3 1.23 -6.6 19.99 31-Oct-94 5.2 5.05 7 40.72 -5.1 9.8 -5.4 1.04 9.5 18.53 30-Nov-94 -3 5.31 -4.7 43.57 -3.5 9.3 -1.9 0.98 -1.5 20.29 30-Dec-94 -0.7 5.13 3.9 41.54 5.4 8.94 17.5 0.97 3.1 19.82 31-Jan-95 7.1 5.09 -1.9 43.16 -5.6 9.43 0.8 1.13 11.5 20.43 28-Feb-95 3 5.45 4.7 42.35 8 8.89 -4.9 1.14 2.1 22.79 31-Mar-95 -0.3 5.58 9.1 44.18 -1.8 9.55 -12.1 1.08 2.6 23.23 28-Apr-95 3.4 5.56 15.2 48.22 2.7 9.38 10.8 0.96 2.6 23.84 31-May-95 11.5 5.75 -1.5 55.28 2.7 9.69 9.7 1.06 8.4 24.45 30-Jun-95 -2.4 6.39 3.2 54 9.1 9.96 -2.4 1.16 3.3 26.27 31-Jul-95 5.5 6.23 13.4 55.74 -1.5 10.86 1.7 1.14 -1.3 27.18 31-Aug-95 -7.2 6.57 -4.8 63.22 -2.5 10.7 -15.4 1.16 -5.3 26.84 29-Sep-95 -1.6 6.09 -8.6 58.79 2.6 10.64 -7.7 0.98 4.8 25.36 31-Oct-95 -3.5 6 2.9 53.74 -11.9 10.69 -14.6 0.9 7.2 26.55 30-Nov-95 12.2 5.79 -0.4 55.31 4.1 9.42 7.3 0.77 9 28.45 29-Dec-95 7.1 6.46 -5.4 54.95 -1 9.74 -3.4 0.83 1.1 30.97 31-Jan-96 5.5 6.92 18.7 51.02 7.6 9.88 -10.6 0.8 11.4 31.42 29-Feb-96 -0.5 7.3 13.2 61.71 -11.7 10.63 6.6 0.71 -0.4 34.99 29-Mar-96 7.7 7.22 -9.3 69.74 10.5 9.32 2.5 0.75 -4 34.81 30-Apr-96 2.2 7.83 -3.1 63.27 0.9 11.68 15.7 0.78 -0.3 33.42 31-May-96 -2.6 8 -0.6 58.59 0.6 11.79 -13.5 0.9 0.7 33.53 28-Jun-96 -5 7.75 -7.3 58.05 -7.5 11.82 -4.8 0.78 -2.9 33.71 31-Jul-96 -7.8 7.44 8.6 53.84 2.7 11 1.3 0.74 -0.8 32.75 30-Aug-96 3.7 6.86 6.7 58.01 6.3 11.3 -2.5 0.75 0.2 32.43 30-Sep-96 1.1 7.08 8.9 60.33 6.3 11.93 -12.8 0.73 2.2 32.43 31-Oct-96 -0.5 7.16 3.6 65.67 0.3 12.75 10.3 0.63 -6.1 33.13 29-Nov-96 6.3 7.12 23.8 68.05 0.3 12.79 1.3 0.69 5.2 31.13 31-Dec-96 5.9 7.54 -4.9 84.07 -4.7 12.75 -3.9 0.7 -2.9 32.7 31-Jan-97 6.1 7.98 3.5 78.41 0.9 12.16 9.6 0.67 0.3 31.66 28-Feb-97 -2.7 8.47 -8.1 81.19 2.4 12.27 -3.8 0.74 -4.8 31.75 31-Mar-97 -0.7 8.2 -4.5 74.4 -6.3 12.49 -2.6 0.71 9.2 30.18 30-Apr-97 0.5 8.14 16.9 71.03 8.3 11.71 21.3 0.46 13.2 32.97 30-May-97 11.5 8.21 8 87.88 13.9 12.68 46.2 0.67 -5.9 37.02 30-Jun-97 8.5 9.11 4.3 86.43 1.4 14.4 3.8 0.98 -3.9 34.77 31-Jul-97 2.2 9.88 17.2 90.17 15.6 14.61 19.6 0.85 11.3 33.32 29-Aug-97 -4.3 10.09 -3.9 105.66 -5.6 16.89 20.3 1.02 -11.8 37.07 30-Sep-97 11.6 9.61 4.6 99.58 4.3 15.95 11.3 1.22 0.7 32.55 31-Oct-97 -8.9 10.72 -7.1 104.12 -18.2 16.63 -16.1 1.44 -5.9 32.77 28-Nov-97 -2.6 9.79 11.4 96.75 6.1 13.61 -5.1 1.21 8.4 30.83 31-Dec-97 4.8 9.49 -4.5 107.56 -9.2 14.36 12.8 1.15 -1.5 33.41 30-Jan-98 -1.6 9.95 -5.6 101.71 5.9 13.04 8.8 1.22 -1.3 32.89 27-Feb-98 11.1 9.79 6 96 2.6 13.81 12.5 1.33 16 32.46 31-Mar-98 9.4 10.83 -0.5 101.53 0.5 14.09 15.2 1.5 10 37.58 30-Apr-98 -7.6 11.88 11.6 100.98 11.3 14.17 -14.6 1.72 3.1 41.33 29-May-98 3.1 11.01 1.6 110.85 -11.4 15.81 1 1.47 6.2 42.44 30-Jun-98 -10.3 11.3 -2.3 110.79 -6.5 14.14 -4.3 1.48 5.1 45.11

Exhibit 2e

 Exhibit 2 Monthly Returns for Dow 30 Stocks MERCK & CO INC 3M PROCTER & GAMBLE CO PHILIP MORRIS COS INC PRIMERICA CORP Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) 31-Jan-90 -6.8 30.64 -1.9 17.84 -8.3 24.35 -9 38.62 -8.1 2.74 28-Feb-90 -5.4 28.56 3.5 17.5 -0.2 22.18 -2.3 35.14 2.9 2.51 30-Mar-90 2.3 27.03 1.6 17.95 6.1 22.14 8 34.33 2.3 2.58 30-Apr-90 5.4 27.48 -2.5 18.23 4.9 23.46 6 36.77 4.5 3.1 31-May-90 13.6 28.96 5 17.78 17 24.45 0.3 38.97 13.8 3.24 29-Jun-90 4.8 32.72 4.8 18.51 5.4 28.61 11.2 39.09 4.6 3.68 31-Jul-90 2.7 34.3 4.3 19.29 0.1 30.17 3 43.18 -5.2 3.78 31-Aug-90 -7.8 35.24 -12.1 20.12 -11.2 30.04 -5.7 44.45 -13.6 3.57 28-Sep-90 -6.7 32.28 -2.1 17.53 -5.4 26.66 1.2 41.9 -26.5 3.08 31-Oct-90 1 29.76 2.4 17.12 8.6 25.24 4.1 41.83 -11.1 2.28 30-Nov-90 12.2 30.05 3.8 17.54 5.4 27.23 3.2 43.56 24.8 2.01 31-Dec-90 4.9 33.72 5.5 18.04 4.5 28.7 7.3 44.95 1.1 2.51 31-Jan-91 1.8 34.82 -1 18.89 -7.9 30.03 7.5 47.89 15.7 2.47 28-Feb-91 11.6 35.45 5.2 18.7 2.5 27.47 18.7 51.48 16.6 2.85 28-Mar-91 3.9 39.56 0 19.5 4.8 28.17 3.7 61.08 -0.8 3.33 30-Apr-91 2.1 40.87 0.7 19.5 -0.9 29.48 -1.8 62.93 -3.4 3.3 31-May-91 10.3 41.74 7.7 19.63 1.5 29.04 2.4 61.77 7.7 3.18 28-Jun-91 -1.8 46.05 -1.7 20.98 -9.1 29.48 -6.5 63.28 -12.3 3.42 31-Jul-91 10.9 44.94 -6.3 20.56 5 26.68 6.7 58.81 14.4 3.04 30-Aug-91 -1 49.83 -0.1 19.27 3.4 27.84 9.4 62.75 6.3 3.46 30-Sep-91 2.6 49.1 3.7 19.08 1.6 28.79 -2 68.66 5.6 3.68 31-Oct-91 5.5 50.3 1 19.82 -0.9 28.7 -2.8 66.85 2.8 3.81 29-Nov-91 6.6 53.06 -3.8 20.01 -3.1 28.27 -3.4 64.99 -10.3 3.91 31-Dec-91 14.2 56.59 9.8 19.08 15.9 27.39 19.2 62.79 20.7 3.51 31-Jan-92 -5.6 64.35 -4.5 20.89 11.1 31.76 -4.8 74.02 5.7 4.26 28-Feb-92 0.3 60.73 0.9 19.96 -2 35.1 0.5 70.44 0 4.49 31-Mar-92 -6.2 60.92 -2.5 19.96 0.6 34.39 -0.6 70.79 -3 4.49 30-Apr-92 -1.4 56.86 5.6 19.46 1.5 34.65 2.8 69.87 1.4 4.35 29-May-92 4.2 56.04 2.9 20.56 -0.5 34.98 -0.5 71.83 -5.5 4.4 30-Jun-92 -2.8 58.41 1.4 20.97 -10.5 31.17 -4.5 71.48 0 4.15 31-Jul-92 6.4 56.36 3.1 21.26 10.7 31.21 8.7 67.18 15.2 4.24 31-Aug-92 -5.8 59.98 -0.7 21.91 -7.4 34.35 2.7 73.01 -9.7 4.86 30-Sep-92 -8.5 56.22 4.1 21.59 5.3 31.8 4.1 74.95 10.1 4.39 30-Oct-92 -1.4 51.33 0.4 22.44 7.6 33.52 -10.3 76.15 -2.3 4.81 30-Nov-92 2.8 50.61 -0.1 22.53 2.6 35.9 4.8 68.28 12.2 4.7 31-Dec-92 -3.3 52.05 -1.3 22.34 -1.2 36.83 -2.3 71.54 1.3 5.24 29-Jan-93 -6.9 49.75 -2.6 22.05 -6.7 36.45 -3.1 69.29 9.8 5.31 26-Feb-93 -4.6 46.31 8.5 21.47 4.5 33.81 -10.2 67.16 3.7 5.83 31-Mar-93 -7.5 44.16 3.8 23.12 -4.1 35.34 -3.7 60.31 26.1 7.6 30-Apr-93 4.6 40.58 1.6 23.99 -1 33.96 -26.6 57.36 -0.3 7.65 28-May-93 3.4 42.44 2.2 24.38 0 33.45 7.2 42.13 1.2 7.63 30-Jun-93 -6.5 43.87 -4.3 24.73 5.9 33.45 -2.4 45.15 13.5 7.69 30-Jul-93 -13.7 40.65 -2.8 23.63 -5.7 35.43 -2.8 43.3 2.6 9.26 31-Aug-93 4.1 35.07 5.2 22.97 -0.8 33.21 3.4 42.07 9.9 10.41 30-Sep-93 -2.7 36.5 -6.2 23.98 -1.8 32.96 -4.6 43.52 7.6 10.41 29-Oct-93 4.5 34.92 0.9 22.32 14.9 32.38 17.2 40.2 -7.6 11.2 30-Nov-93 6.6 36.48 5.9 22.51 4.6 36.99 4.2 47.1 -9.1 10.35 31-Dec-93 1.2 42.73 -0.2 23.52 0.4 38.73 0.5 49.09 -2.8 9.38 31-Jan-94 6.2 44.08 -1.4 23.47 4.9 38.9 8.3 48.77 8.4 9.41 28-Feb-94 -11.3 46.8 -0.9 23.14 -3.4 40.61 -7.1 52.83 -11.6 13.51 31-Mar-94 -7.2 41.51 -6.1 22.74 -7 39.29 -8.4 49.1 -5.1 11.9 29-Apr-94 -0.4 38.15 -1 21.19 6.9 36.56 7.7 44.39 -1.4 11.3 31-May-94 3 37.99 5 20.97 -0.9 38.86 -9.6 47.79 -5 11.14 30-Jun-94 -1.5 38.25 -2.7 21.6 -5.3 38.52 6 43.2 -1.9 10.64 29-Jul-94 -0.4 37.4 7.1 21.02 5.1 36.5 6.8 45.17 2.7 10.44 31-Aug-94 15.2 37.24 4.6 22.5 9.2 38.13 10.9 48.24 12.2 10.78 30-Sep-94 5.3 42.89 0.2 23.35 -2.1 41.63 1.6 53.15 -11.1 12.04 31-Oct-94 0 44.9 0.2 23.34 6 40.78 0.2 52.94 5.7 10.66 30-Nov-94 4.6 44.9 -6.7 23.4 -0.6 43 -2.4 53.04 -5.3 11.27 30-Dec-94 3.2 46.87 4.1 21.55 -0.8 42.81 -2.4 51.74 -1.1 10.62 31-Jan-95 5.6 47.98 -1.9 22.44 5.6 42.49 3.9 49.42 14.5 10.37 28-Feb-95 5.3 50.65 5.4 22.02 2.1 44.63 1.7 51.35 5.4 11.82 31-Mar-95 1.3 53.32 6.2 23.02 -0.4 45.58 9 52.21 -0.6 12.46 28-Apr-95 0.6 52.87 2.6 24.4 6 45.41 3.6 55.7 7.1 12.38 31-May-95 9.6 53.18 1.4 25.03 2.9 47.89 7.6 57.72 2.3 13.1 30-Jun-95 5.2 58.12 -4.4 25.2 0 49.4 3.2 61.57 3.9 13.47 31-Jul-95 5.1 60.75 -1.3 24.09 -3.6 49.4 -3.7 62.83 8.3 13.99 31-Aug-95 -3.4 63.84 -2.7 23.78 0.7 47.34 4.2 60.51 1.7 15.15 29-Sep-95 13 61.68 3.2 22.95 11 47.69 13.2 62.69 10.7 15.35 31-Oct-95 2.7 69.19 0.9 23.69 5.7 52.87 0.9 70.14 -4.6 16.95 30-Nov-95 7.6 71.04 15.8 23.9 6.8 55.61 4.2 70.77 18.2 16.11 29-Dec-95 6.6 76.45 1.5 27.43 -4 59.37 4 73.71 5.3 18.99 31-Jan-96 6.9 80.81 -2.8 27.85 1.7 56.96 2.8 75.33 5 19.81 29-Feb-96 -5.5 86.35 1.7 27.07 -2.4 57.65 6.7 77.42 2.1 20.8 29-Mar-96 -5.5 81.57 -0.8 27.33 3.4 56.29 -10.4 82.64 -1.3 21.16 30-Apr-96 -2.8 76.65 1.7 27.03 0.2 58.17 2.7 73.25 -6.8 20.88 31-May-96 6.8 74.27 4.5 27.5 4 58 10.3 74.78 1.5 19.45 28-Jun-96 0.5 79.33 1.1 28.55 3.1 60.32 5.7 82.46 9.9 19.69 31-Jul-96 -0.6 78.62 -2.3 28.86 -1 62.16 0.6 86.29 -7.4 21.64 30-Aug-96 2.1 78.16 6.5 27.21 -0.4 61.22 -14.2 86.81 3 20.04 30-Sep-96 7.8 79.84 1.5 28.82 9.7 60.96 1.3 74.47 13.3 20.58 31-Oct-96 5 85.61 9.5 29.24 2 66.84 2.9 73.48 10.7 23.6 29-Nov-96 12.4 89.05 10.3 32.01 9.8 67.79 11.8 75.63 10.6 26.06 31-Dec-96 -3.6 100.05 -0.9 35.01 -1 74.46 10.6 84.53 0.8 28.83 31-Jan-97 13.8 95.98 2.7 34.69 7.5 73.4 5.2 92.03 15.8 28.99 28-Feb-97 1.7 109.24 8.5 35.63 3.9 78.85 13.8 96.81 2.4 33.46 31-Mar-97 -8.1 111.05 -8 38.46 -4.5 81.92 -14.7 110.15 -10.5 34.26 30-Apr-97 7.3 101.94 2.8 35.27 10 77.97 3.5 92.4 15.6 30.67 30-May-97 -0.6 109.35 6.2 36.26 9.6 85.44 11.7 95.63 -0.6 35.6 30-Jun-97 14.3 108.49 11.3 38.24 2.4 93.39 1.5 106.87 14.7 35.27 31-Jul-97 1.5 123.5 -7.3 42.56 8.1 95.68 2 107.19 14.3 40.44 29-Aug-97 -11.6 125.39 -4.6 39.44 -12.5 103.04 -3.2 109.3 -11.7 46.13 30-Sep-97 9.3 110.9 2.9 37.34 3.8 90.17 -3.9 105.82 7.6 40.71 31-Oct-97 -10.7 120.71 -1 38.41 -1.2 93.56 -4.7 100.71 2.6 43.8 28-Nov-97 6.2 107.8 7.1 37.39 12 92.12 9.8 96.01 9 48.93 31-Dec-97 12.3 113.61 -15.8 39.82 4.8 103.21 4.9 105.4 5.9 58.21 30-Jan-98 10.7 127.02 1.8 33.54 -1.5 107.27 -8.3 109.64 -8 61.64 27-Feb-98 8.7 140.65 2.8 34.12 8.3 105.34 4.8 100.61 12.5 56.7 31-Mar-98 0.8 152.85 6.7 34.86 -0.6 113.93 -3.2 105.46 7.9 63.64 30-Apr-98 -6 153.31 3.7 36.77 -2.3 113.26 -10.9 101.22 2.2 69.1 29-May-98 -2.9 144.12 -1.3 38.13 2.1 110.33 0.7 90.14 0.1 70.47 30-Jun-98 14.7 139.85 -11.3 37.47 8.6 112.59 6.4 90.8 -1 70.44

Exhibit 2f

 Exhibit 2 Monthly Returns for Dow 30 Stocks SEARS ROEBUCK & CO TEXACO INC. UNION CARBIDE UNITED TECHNOLOGIES WESTINGHOUSE WOOLWORTH CORP USX CORP Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) Return (%) Market Cap (\$ bil) 31-Jan-90 4.6 13.05 -1.1 15.63 -4.8 3.27 -8.1 6.91 -2.4 10.75 -8.9 4.11 -6.3 9.15 28-Feb-90 4.1 13.65 2.4 15.47 10.7 3.11 3.4 6.35 -1.2 10.5 3.2 3.72 7.8 8.57 30-Mar-90 -4.3 14.04 -0.2 15.63 -10.3 3.41 12 6.51 6.7 10.28 5.9 3.84 -0.4 9.15 30-Apr-90 -9.6 13.44 -1.9 15.6 -10.9 3.08 -3.9 7.29 -3.9 10.97 -3.7 4.07 -7.1 9.11 31-May-90 3.5 12.16 3.9 15.3 4.5 2.74 7.4 7.01 1.2 10.44 10.8 3.88 2.7 8.37 29-Jun-90 0.7 12.41 -4.2 15.7 -3.8 2.83 -2.3 7.47 1 10.57 -1.5 4.24 -1.9 8.59 31-Jul-90 -7.9 12.52 11.7 15 0.6 2.74 3.5 6.93 -2.8 10.72 -7.2 4.25 4.5 8.41 31-Aug-90 -11.5 11.53 -1.2 16.76 -12.3 2.76 -16.8 7.17 -7.4 10.32 -15.3 3.91 -5.9 8.79 28-Sep-90 -13.2 10.03 -0.8 16.36 -10.4 2.38 -12.5 5.92 -9.2 9.55 -7.3 3.31 -6.2 8.18 31-Oct-90 -3 8.7 -3.3 15.81 9.2 2.15 5.6 5.17 -15.1 8.66 7.9 3.07 4.1 7.68 30-Nov-90 8.1 8.45 1.8 15.29 -0.8 2.35 -0.1 5.46 6.8 7.35 15.3 3.28 0.7 8 31-Dec-90 -2.9 8.96 1.7 15.36 2.3 2.29 7.3 5.4 7 7.75 3.4 3.78 -2.4 7.97 31-Jan-91 13.3 8.71 -2.6 15.62 16 2.04 -0.8 5.81 0 8.31 5 3.92 2.5 7.78 28-Feb-91 10 9.86 9.2 15 0.7 2.37 5.7 5.76 -5.8 8.31 4 4.08 -0.1 7.97 28-Mar-91 12.5 10.68 0.6 16.39 -6.6 2.35 -2.5 6.03 12.3 7.72 2.3 4.24 0.4 7.88 30-Apr-91 6.8 12.01 5.9 16.49 2.8 2.22 -5.2 5.88 -6.4 8.67 -7.8 4.34 2.3 7.89 31-May-91 10 12.82 -3.4 17.46 11.7 2.28 2.9 5.57 8.2 8.02 9 3.97 -4.9 7.99 28-Jun-91 -6.8 13.94 -6.8 16.65 1.9 2.51 -5.1 5.68 -6.3 8.67 -7.9 4.33 -12.2 6.52 31-Jul-91 8.3 13.02 9.4 15.52 0 2.56 4.8 5.35 -6.3 8.74 -5.2 3.99 12.8 5.73 30-Aug-91 2.4 14.09 -1.3 16.98 6.7 2.56 3.6 5.61 -6.8 8.19 6.1 3.74 29.1 6.46 30-Sep-91 -7.2 14.26 -1.9 16.56 -5.8 2.7 -6 5.76 -7.3 7.53 -5.7 3.97 -5.7 8.33 31-Oct-91 -2.6 13.24 3.6 16.24 -3.7 2.56 8.1 5.47 -20.8 6.99 0.1 3.75 -3.2 7.91 29-Nov-91 -4.3 12.9 -9.3 16.82 -9 2.47 -1.1 5.91 -8.7 5.54 -11.4 3.72 -8.5 7.66 31-Dec-91 7.1 12.17 5.2 15.05 15.7 2.21 13.9 5.79 14.3 4.95 4.4 3.29 -9.3 6.92 31-Jan-92 8.3 13.03 -0.9 15.83 14.2 2.57 -6.5 6.6 2.8 6.13 12.3 3.45 -6.1 6.27 28-Feb-92 7 14.11 -1.7 15.48 7.6 2.93 0.3 6.13 9.1 6.3 -2.5 3.84 1 5.88 31-Mar-92 3.5 14.92 -2.3 15.22 1.5 3.12 3.2 6.13 -6.9 6.81 7.4 3.75 -12.6 5.85 30-Apr-92 -2.8 15.44 9.7 14.86 11 3.17 3.8 6.34 -2.7 6.32 -7.6 4.02 15 5.56 29-May-92 1.1 15.01 2.8 16.09 4.5 3.52 -1.9 6.58 -5.2 6.15 -2.7 3.68 4.2 6.39 30-Jun-92 -8.9 15.01 -3.5 16.54 -5.7 3.65 -0.5 6.4 3.7 5.77 -1.4 3.58 -7.9 6.57 31-Jul-92 0.6 13.71 4.9 15.96 29.6 3.46 9.1 6.37 -2.8 6.02 7 3.54 -1.1 6.19 31-Aug-92 5 13.8 2.7 16.55 -9.6 1.91 -2.7 6.95 -3.3 5.85 5.2 3.75 -9.4 6.12 30-Sep-92 7.8 14.31 -2.5 17 -1.9 1.71 -10.9 6.7 -0.8 5.59 7 3.94 -2 5.44 30-Oct-92 -6.1 15.44 -5.2 16.59 11.4 1.68 -6.6 6.03 -20.8 5.55 1.6 4.22 -8.7 5.34 30-Nov-92 4.2 14.49 0.2 15.52 11.5 1.88 -0.9 5.63 -0.5 4.4 5 4.26 -2.7 4.87 31-Dec-92 5.2 14.92 -0.6 15.56 3.1 2.07 7.2 5.52 5.9 4.31 -7.7 4.47 4.5 4.7 29-Jan-93 8 15.71 1 15.46 2.3 2.19 -2.6 5.95 2.8 4.6 -6.2 4.15 -1.4 4.94 26-Feb-93 8.4 16.96 5.1 15.62 -0.4 2.24 -3.6 5.8 -2 4.73 -1.3 3.85 12 4.87 31-Mar-93 3.5 18.26 1.2 16.2 7.5 2.2 5.6 5.54 10.3 4.6 9.5 3.8 3.3 5.4 30-Apr-93 -4.3 18.9 -0.2 16.4 8.3 2.37 4.2 5.84 2.5 5.08 -3.4 4.16 -5.1 5.58 28-May-93 4.6 18.08 2.3 16.36 -2.2 2.57 8.3 6.09 1.5 5.21 -3.3 3.98 2.3 5.3 30-Jun-93 1.1 18.78 -1 16.53 2 2.48 2.1 6.54 4.1 5.25 -7.7 3.85 -10 5.37 30-Jul-93 22 19.18 -0.6 16.37 -2.6 2.91 0.5 6.7 -0.8 5.53 -7.2 3.56 4.4 4.84 31-Aug-93 9.5 17.48 4.5 16.27 -0.3 2.84 5.7 6.73 -1.7 5.49 3.5 3.27 15.9 5.05 30-Sep-93 -1.1 19.01 4.4 16.79 4.7 2.8 -2.4 7.05 -15.4 5.36 -2.9 3.38 -1.2 5.8 29-Oct-93 6.5 18.85 0.6 17.53 1.9 2.94 11.7 6.88 11.5 4.55 -8.3 3.3 -7.5 5.73 30-Nov-93 -4.5 20.08 -4.7 17.63 6.6 2.99 0.5 7.69 -2.8 5.08 2.2 2.98 -7.9 5.3 31-Dec-93 -2.8 19.03 1 16.6 7.2 3.16 0.2 7.69 0.9 4.9 9.7 3.05 -2.2 4.84 31-Jan-94 3.8 18.54 4.4 16.77 14 3.4 8.7 7.75 -0.5 4.96 3.1 3.35 13.2 4.73 28-Feb-94 -16.1 19.24 -2.9 17.51 -5.6 3.87 1.6 8.42 2.7 4.95 -15 3.41 -6.8 5.3 31-Mar-94 -5.5 16 -2.9 16.8 -5.8 3.62 -8.6 8.5 -16.5 5.08 -31.3 2.9 -4.3 4.94 29-Apr-94 9 15.12 1 16.32 17.2 3.42 2.6 7.76 -3.1 4.24 11.8 2 2.3 4.73 31-May-94 8.6 16.49 1.1 16.48 2.6 4 4.8 7.97 12.3 4.11 -5.3 2.19 2.5 4.84 30-Jun-94 -5.2 17.78 -4.9 16.45 -1.4 4.06 -3.2 8.4 -10.6 4.59 0.8 2.08 -2.2 4.91 29-Jul-94 -1.6 16.86 5.2 15.65 6.6 4.01 -6.2 8.16 4.3 4.11 -3.8 2.09 3.7 4.8 31-Aug-94 1.1 16.6 -1.3 16.46 22.3 4.27 6.4 7.65 16.9 4.29 7.4 2 0.3 4.98 30-Sep-94 1.3 16.64 -3 16.04 -1.1 5.2 -1.6 8.08 -8 4.99 6.9 2.14 2.9 4.94 31-Oct-94 3.1 16.87 9 15.56 -2.9 5.14 0.6 7.91 9 4.61 -9.9 2.29 7.3 5.09 30-Nov-94 -3.7 17.4 -3.7 16.96 -12.7 4.95 -6.3 7.96 -9.7 5.01 -8.9 2.05 -4.6 5.41 30-Dec-94 -2.6 16.61 -3.6 16.12 2.6 4.25 7.5 7.29 -3.9 4.54 6.2 1.87 -9 5.16 31-Jan-95 -3.8 16.18 2.9 15.54 -13.2 4.37 2.2 7.84 14.7 4.36 6 1.99 -2.3 4.7 28-Feb-95 12.2 15.56 4.7 15.99 13 3.79 4.1 8.01 10.7 4.98 -3.2 2.09 2.6 4.59 31-Mar-95 8.4 17.32 4.5 16.54 7 4.25 4.1 8.17 -8.9 5.51 21.3 2.02 7.7 4.67 28-Apr-95 1.6 20.67 2.6 17.29 4.9 4.55 5.8 8.51 6.2 5.04 -13.5 2.45 7.1 5.03 31-May-95 4.9 21.02 1.4 17.75 -8.8 4.77 4.4 9.01 -3 5.36 -3.9 2.12 6.9 5.38 30-Jun-95 5.3 21.89 -4.2 17.78 15 4.33 3 9.36 0.9 5.19 -1.6 2.04 -0.6 5.71 31-Jul-95 6.3 23.11 1.1 17.04 3.7 4.6 7.5 9.64 -6.8 5.24 3.3 2 1.9 5.67 31-Aug-95 -0.1 12.67 -1.2 17.24 2.7 4.77 -0.1 10.36 0.4 4.88 -14.4 2.07 3.3 5.98 29-Sep-95 13.9 12.61 -0.4 16.82 12 4.87 6 10.27 10.1 4.89 17.8 1.77 -4.2 6.13 31-Oct-95 -7.8 14.36 5.6 16.75 -4.7 5.46 0.4 10.89 -5.8 5.39 -7.1 2.09 -10.1 5.67 30-Nov-95 16.5 13.24 9.6 17.71 5.1 5.2 6.3 10.94 19.8 5.07 2.6 1.95 4.5 5.1 29-Dec-95 -1 15.35 6.3 19.21 -5.4 5.44 1.2 11.55 -3 6.62 -13.3 2 6.1 5.28 31-Jan-96 6.4 15.2 3 20.73 12.3 5.15 8.2 11.58 26.7 6.8 -13.5 1.73 -3.8 5.6 29-Feb-96 9.9 16.18 -0.4 21.36 7.3 5.78 5.2 12.52 -10.6 8.62 6.7 1.5 -0.4 5.39 29-Mar-96 7.4 17.69 7.5 21.06 10.3 6.18 4.5 13.1 4.7 7.68 30.2 1.6 4.1 5.32 30-Apr-96 2.6 19.11 -0.3 22.65 -8.3 6.7 -1.6 13.7 -2.6 8.08 22.4 2.08 14.3 5.53 31-May-96 2.2 19.57 -1.1 22.58 -4.8 6.15 -0.5 13.45 -2.4 7.87 7.2 2.54 0.2 6.32 28-Jun-96 -4.4 19.91 0.1 22.12 -7.8 5.74 5.1 13.31 2.7 7.67 9.8 2.73 -8 6.29 31-Jul-96 -15.7 19.07 1.3 22.16 5.7 5.29 -2.2 14 -11.3 7.91 -14.4 2.99 1.9 5.78 30-Aug-96 7.9 16.08 5.4 22.46 3.4 5.49 0.7 13.7 -1.9 7.02 10.4 2.56 2.7 5.89 30-Sep-96 1.7 17.22 3.7 23.45 5.5 5.65 6.8 13.73 13.7 6.86 -2.9 2.83 3.6 6 31-Oct-96 8.1 17.52 10.5 24.31 -6.6 5.96 7 14.66 -7.8 7.84 1.8 2.75 1.2 6.22 29-Nov-96 3.3 18.94 -1.6 26.86 8.7 5.53 9.4 15.56 9.5 7.21 14.3 2.8 5.4 6.29 31-Dec-96 -7.5 19.47 -1 26.2 -11.4 5.87 -5.5 16.01 6 7.89 -8.3 3.2 4.4 6.58 31-Jan-97 4.3 18.01 7.9 25.95 11 5.21 5.3 15.93 -7.5 8.38 -7.4 2.95 11.5 6.86 28-Feb-97 13.5 18.79 -5.8 28 4.5 5.78 8.3 16.77 -5.9 11.52 2.5 2.73 0.7 7.65 31-Mar-97 -7.6 21.24 10.7 26.15 -6.3 6.02 0.7 17.86 3.6 10.42 12 2.8 4.7 7.65 30-Apr-97 -4.2 19.62 -3.7 28.96 12.7 5.63 -0.2 17.98 -5.6 10.8 -8 3.13 -0.9 8.01 30-May-97 2.8 18.82 4.2 27.82 -5.9 6.32 6.7 17.95 20.3 10.19 12.2 2.88 8.8 7.95 30-Jun-97 9.4 19.26 -0.3 28.77 0.7 5.87 3.3 19.04 14.2 12.36 -0.5 3.24 -3.3 8.59 31-Jul-97 17.4 21.07 6.7 28.67 17.7 5.91 1.9 19.66 4.1 14.7 18 3.22 11.5 8.31 29-Aug-97 -9.7 24.72 0.2 30.6 -7 6.95 -7.3 19.91 7 15.29 -21 3.8 1.8 9.26 30-Sep-97 0.3 22.22 6.5 30.47 -5.1 6.44 3.8 18.38 5.4 16.61 -1.1 3 14.2 9.37 31-Oct-97 -26.5 22.3 -7.1 32.45 -6.2 6.11 -13.6 19.07 -2.3 17.5 -14.1 2.98 -3.9 10.7 28-Nov-97 10 16.4 -0.2 30.14 -2.9 5.73 7.5 16.31 13.7 18.66 13.8 2.56 -3.7 10.29 31-Dec-97 -1.2 17.96 -3.8 30.92 -2.7 6.09 -2.8 17.46 -1.9 21.34 -5.8 2.92 -1.5 9.86 30-Jan-98 1.7 17.74 -4 29.76 2 5.92 11.6 16.96 1.7 20.94 6.7 2.75 -0.6 9.73 27-Feb-98 15.7 18.03 7.7 28.56 6.5 6.04 10.3 18.93 3.5 21.29 9.2 2.93 3.6 9.68 31-Mar-98 8.4 20.78 8.1 30.51 7.9 6.4 3.4 20.81 9.7 22 5.3 3.2 8.9 9.97 30-Apr-98 3.3 22.45 2.3 32.59 -3.2 6.87 6.6 21.16 5 24.25 -8 3.37 -4.8 10.85 29-May-98 4.6 23.18 -5.6 33.33 3.4 6.64 -4.1 22.59 -10.9 25.46 -14.1 3.11 -1.7 10.33 30-Jun-98 -1.2 24.16 3.4 31.25 6.9 6.8 -1.6 21.57 0 22.8 -3.2 2.67 -2 10.09

Exhibit 3

 Germany Ireland Italy Japan Date Stock Return Market Capitalization Bond Return Stock Return Market Capitalization Bond Return Stock Return Market Capitalization Bond Return Stock Return Market Capitalization Bond Return 1981 3.27 57,569 4.11 -4.26 1,316 5.11 4.62 23,528 -3.10 21.90 358,043 18.49 1982 19.42 61,691 23.10 -5.61 995 38.04 -10.55 18,073 27.56 5.72 439,744 10.83 1983 40.75 73,880 7.09 76.75 1,404 16.71 22.92 17,915 36.26 26.49 509,844 9.47 1984 11.06 69,496 18.14 -0.91 1,147 12.36 30.84 19,532 44.70 29.18 509,844 10.48 1985 79.47 155,940 11.69 66.23 2,286 34.31 108.42 45,693 18.67 14.16 725,436 10.59 1986 7.23 211,692 11.89 54.20 4,350 5.42 73.73 106,518 50.21 56.86 1,455,105 14.17 1987 -38.47 162,908 3.10 -11.41 4,963 28.15 -32.59 85,250 -3.98 8.13 2,137,715 7.84 1988 31.09 200,860 2.98 43.60 7,340 25.57 26.41 96,192 14.52 38.09 2,964,727 5.36 1989 37.46 282,378 -2.93 37.16 9,785 3.15 15.29 114,032 -1.24 20.47 3,150,654 -3.83 1990 -18.36 260,676 -2.06 -26.33 8,162 7.00 -27.72 89,919 8.41 -38.94 2,027,842 -0.09 1991 8.13 266,741 12.39 17.78 10,337 14.96 2.22 103,415 26.60 0.85 2,358,345 15.20 1992 -4.29 238,333 16.31 -9.58 8,528 5.81 -5.59 77,353 1.68 -21.42 1,826,976 12.66 1993 45.85 326,772 19.53 61.34 12,228 30.91 49.20 102,478 56.52 13.59 2,270,842 17.13 1994 -7.93 339,363 -6.14 5.35 14,756 -10.87 7.41 133,167 -13.11 7.08 2,747,311 -3.49 1995 7.58 400,968 21.97 25.29 19,237 20.36 -1.19 139,736 17.69 0.35 2,846,585 15.48 1996 27.95 495,237 6.98 25.93 25,440 13.60 10.98 170,052 49.12 -6.98 2,386,941 3.75 1997 40.01 606,704 4.78 45.30 33,347 16.69 64.80 252,960 25.69 -16.06 1,812,145 3.85
 Netherland New Zealand South Africa Switzerland Date Stock Return Market Capitalization Bond Return Stock Return Market Capitalization Bond Return Stock Return Market Capitalization Bond Return Stock Return Market Capitalization Bond Return 1981 1.31 19,952 5.76 10.05 4,118 14.58 -0.32 29,105 3.99 -9.94 23,243 -0.14 1982 24.85 21,604 29.26 -19.02 2,931 11.43 50.82 36,353 28.94 12.70 22,587 13.72 1983 56.95 28,191 7.93 95.93 5,066 27.01 16.23 43,604 -2.18 26.15 25,662 3.07 1984 28.91 29,677 15.85 -0.57 3,508 -20.39 11.53 27,711 2.08 1.56 21,677 1.99 1985 32.58 48,023 15.20 46.88 5,083 18.10 38.72 20,221 7.90 58.91 41,534 6.25 1986 8.10 65,100 11.77 104.09 9,702 22.95 59.67 27,349 35.09 10.95 64,444 7.43 1987 -18.70 66,162 4.26 -35.61 7,396 20.88 -3.90 39,421 15.35 -34.49 57,494 6.48 1988 31.20 75,787 5.22 -2.64 9,120 20.43 7.97 33,229 8.18 11.60 66,135 1.07 1989 26.89 106,486 -2.03 20.65 10,139 21.78 62.56 56,242 23.88 27.19 85,831 -3.84 1990 -13.25 101,225 -0.97 -34.78 6,516 12.28 -7.12 53,254 18.85 -20.82 90,166 -0.20 1991 17.23 112,860 11.32 26.42 11,550 40.53 30.49 96,672 12.77 20.91 116,529 8.14 1992 9.00 110,892 19.02 0.19 10,591 15.66 -7.05 58,864 26.63 24.60 145,659 14.02 1993 46.31 159,107 16.98 55.63 17,072 20.88 66.13 104,746 31.24 48.05 212,466 15.70 1994 1.95 181,095 -6.18 -3.75 18,908 -12.72 23.27 130,245 -11.15 -7.29 224,792 -4.28 1995 20.89 231,344 17.20 15.64 22,404 19.53 4.69 139,970 30.70 28.05 329,869 18.50 1996 35.34 290,811 9.09 11.19 24,446 11.12 8.15 117,848 4.88 19.37 339,927 5.03 1997 46.43 363,562 11.21 6.89 19,631 6.79 -11.09 95,414 27.88 53.42 482,030 8.94

 UK US Date Stock Return Market Capitalization Bond Return Stock Return Market Capitalization Bond Return 1981 12.83 184,752 2.08 -3.61 893,430 1.90 1982 28.52 191,266 51.53 22.44 1,049,433 39.16 1983 25.97 210,607 20.31 22.55 1,222,131 -0.58 1984 30.18 211,340 9.96 6.24 1,228,621 14.22 1985 22.84 302,349 11.14 32.23 1,554,711 29.74 1986 26.29 403,071 9.16 17.68 1,743,364 25.21 1987 7.90 562,787 21.88 4.74 1,800,268 -3.45 1988 10.08 567,570 9.54 17.84 1,956,196 9.94 1989 37.39 665,860 5.96 32.40 2,355,377 17.98 1990 -8.26 705,011 8.07 -3.49 2,186,563 6.85 1991 20.87 800,896 18.82 29.16 2,900,656 18.17 1992 19.55 757,364 14.30 5.90 3,074,287 8.07 1993 24.59 917,948 40.52 10.29 3,332,434 16.94 1994 -6.95 903,719 -9.98 1.56 3,296,047 -6.19 1995 26.36 1,097,924 18.07 36.99 4,935,800 31.54 1996 15.79 1,392,185 9.42 21.29 5,926,178 -1.44 1997 24.75 #REF! 22.98 34.41 8,003,025 14.51

1

The common stocks have seen a substantial rise in their value from 1926 to 1997. A dollar invested in 1926 in stocks in now worth \$1828. The market capitalisation of our portfolio of selected 30 stocks has grown from \$582 billion to \$1833 billion. But there is no single stock which can be attributed to this gain. Over different periods different stocks have seen a surge in returns while some have tanked at the same period. Thus, there is a need of diversification in the investments of the investors to achieve high gains and yet remain on the lower side of the risk. And that itself is the theme of the portfolio and our suggestion for the investment policy of the new pension fund.

The analysis should begin by commending the decision to keep a portion of the investment in bonds intact. The ratio is not being commented here but just the decision of keeping bonds. Bonds move opposite to the stock markets. They are safe heavens for continuous and reasonable return demanding investors. They act as a cushion for the losses that the stock market is susceptible to. Specially the systematic risk which affects the whole stock market.

Moving on to the choice of the stocks themselves, it is suggested that the investment should be made in a diversified portfolio with stocks picked up from different industries. A higher return from the stocks generally means that the risk associate with the selected stocks will also be high. But if the stocks belong to a varied set of industries which are not dependent on each other then there is less chance of all the stocks