Consider the performance of the T. Rowe Price Growth and Income Fund for a recent multi-year period, as shown in Figure 11-1. Notice how this fund’s total returns and the total returns for the S&P 500 Index track very closely over this period. The market’s performance explains almost all of the fund’s performance for this time period.

Figure 11-1

Transcribed Image Text:

Return (%) 40 30 20 10 0 -10 -20 -30 40 Growth and income return S&P 500 return 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014