By: Iris Tan Zoe Ke

Active VS. Passive

What is Active Management?

Actively managed by portfolio manager With a goal to outperform the investment

index Constantly buying and selling Invested funds are closely watched

What is Passive Management

Can also be named Index Investors often expect a certain return rate

that is close to an investment index. Sample index companies:

S&P 500

Matrixes

Rate of ReturnComparison of profitability of different

companies. Standard Deviation

A measure to quantify variation and dispersion. Beta

Correlation to general market movements.

Rate of Return

Company Name Annual 3-Year Rolling 5-Year Rolling 7-Year Rolling 10-Year Rolling

S&P 4.58% 2.28% 2.00% 1.64% 1.64%

Science &Tech 9.21% 11.82% 13.80% 11.96% 5.27%

Core Investment 10.30% 6.70% 7.50% 5.60% 6.40%

Accumulative 10.30% 6.80% 7.80% 6.20% 6.80%

Global Growth 9.40% 6.60% 7.40% 4.80% 6.70%

W&R Vanguard 10.44% 6.76% 7.88% 5.61% 6.49%

Standard Deviation (Volatility)

Company Name Annual 3-Year Rolling 5-Year Rolling 7-Year Rolling 10-Year Rolling

S&P 500 23.10% 11.08% 7.14% 2.90% 3.72%

Science & Tech 24.56% 18.66% 13.90% 10.56% 2.69%

Core Investment 17.68% 9.56% 9.32% 6.03% 4.37%

Accumulative 18.14% 9.73% 10.16% 7.97% 5.33%

Global Growth 21.66% 11.38% 10.70% 4.85% 4.13%

W&R Vanguard 20.50% 10.84% 10.70% 7.13% 4.97%

Correlation

Company Name Annual 3-Year Rolling 5-Year Rolling 7-Year Rolling 10-Year Rolling

S&P

Science & Tech 0.87 1.04 1.74 3.2 0.67

Core Investment 0.73 0.81 1.24 1.86 1

Accumulative 0.74 0.81 1.32 2.54 1.33

Global Growth 0.77 0.89 1.34 1.19 0.94

Vangard 0.78 0.86 1.41 2.27 1.28

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