Using the spreadsheet information below

A. Determine how much a passive investor would have on December 31, 2011 if she invested $10,000 on January 1, 2002 in the passive portfolio

B. Determine how much a passive investor would have on December 31, 2011 if she invested $10,000 on January 1, 2002 in the active portfolio

C. Which portfolio was more risky?

D. Calculate the correlation between the return for these two portfolios.

E. How do you explain the close association in returns.

	Vanguard 500 Index Fund	Vanguard Growth & Income Fund
2011	2.08%	2.42%
2010	15.05%	14.62%
2009	26.62%	22.42%
2008	36.97%	-37.72%
2007	5.47%	2.62%
2006	15.75%	14.01%
2005	4.87%	5.82%

2004	10.82%	11.11%
2003	28.59%	30.15%
2002	22.10%	21.92%