Free Wealth Management Guide Building An Effectively Diversified Investment Por | Page 9

Portfolio Four

January 1970 - December 2012
Annualized
Return

Annualized
Standard
Deviation

Growth of
$100,000

Portfolio One
Portfolio Two
Portfolio Three

8.5%
8.4%
8.7%

11.6%
11.0%

$3,281,865
$3,249,085

10.4%

$3,678,586

Portfolio Four

9.0%

10.8%

$4,071,094

U.S.
MicroCap
12%

REITs
12%
Short Int. Bonds
40%

S&P 500 36%

Portfolio Five

(adding value companies)
Besides classifying a stock based upon its size
(market capitalization), stocks are also classified as either growth or value companies.
Growth stocks are companies whose earnings
are expected to grow at an above-average rate
relative to the market. A growth st