Managerial Report

1.1 Introduction

1.1 S&P 500

In this report, S&P 500 is selected as benchmark.

The S&P 500 is regarded as a gauge of the large cap U.S. equities of the U.S. economy, which are publicly held on either the NYSE or NASDAQ, and covers 75% of U.S. equities. Since this is a price index and not a total return index, the S&P 500 index here does not contain dividends (source from http://www.standardandpoors.com).

S&P 500 Global Industry Classification Standard (GICS) Sectors |   |

As of March 31, 2006 |   |

  | Number of Cos. | % of Market Capitalization |   |

Consumer Discretionary | 88 | 10.20% |   |

Consumer Staples | 39 | 9.30% |   |

Energy | 30 | 9.60% |   |

Financials | 84 | 21.00% |   |

Health Care | 58 | 12.90% |   |

Industrials* | 53 | 11.50% |   |

Information Technology | 77 | 16.00% |   |

Materials | 31 | 3.10% |   |

Telecommunication Services | 8 | 3.30% |   |

Utilities | 32 | 3.20% |   |

Industrials (Composite)** | 376 | 73.90% |   |

|

*S&P 500 Industrials Sector is part of the Global Industry Classification Standard (GICS). |

**S&P 500 Industrials Composite is a continuation of the Industrials that have been published by Standard & Poor's for over 40 years, and is provided in recognition of the fact that it is used by analysts and has a long history. It is not the same as the GICS Industrials Sector. |

The proportion of S&P 500 industry sector:

Figure 1

1.2 Descriptive Statistics

1.2.1Descriptive Statistics Value

Descriptive Statistics | | | | | |

Stock | N | Max-Min | Mean | Std. Deviation | Skewness | Kurtosis |

Microsoft | 36.000 | 0.171 | 0.005 | 0.045 | 0.024 | -0.940 |

Exxon Mobil | 36.000 | 0.349 | 0.017 | 0.055 | 1.518 | 6.584 |

Caterpillar | 36.000 | 0.319 | 0.030 | 0.069 | 0.331 | 0.286 |

Johnson & Johnson | 36.000 | 0.163 | 0.005 | 0.035 | 0.596 | 0.434 |

McDonald's | 36.000 | 0.297 | 0.024 | 0.068 | 0.210 | 0.224 |

Sandisk | 36.000...