2010

®
Ibbotson Risk Premia
Over Time Report
Estimates for 1926–2009

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Page
Introduction

2

Wealth Indices of Investments in the U.S. Capital Markets (1925-2009)

3

Summary Statistics of Annual Returns (1926-2009)
▪ Basic series`
▪ CRSP size deciles

4

Key Variables in Estimating the Cost of Capital (year-end 2009)
Riskless rates, equity risk premia, size premia, size breakpoints

5

Long-Horizon Equity Risk Premia (all historical time periods)
Percent per annum arithmetic mean risk premia

6

Intermediate-Horizon Equity Risk Premia (all historical time periods)
Percent per annum arithmetic mean risk premia

15

Short-Horizon Equity Risk Premia (all historical time periods)
Percent per annum arithmetic mean risk premia

24

Mid-Cap Size Premia (all historical time periods)
Percent per annum risk premia

33

Low-Cap Size Premia (all historical time periods)
Percent per annum risk premia

42

Micro-Cap Size Premia (all historical time periods)
Percent per annum risk premia

51

Treasury bill total returns.936 million. global. please visit our web site at: Please note that we have constrained the beta and size premia tables to contain data only for five-year periods or longer. 1 2 For U.Introduction The 2010 Ibbotson® Risk Premia Over Time report contains data that summarizes the results of the capital markets for 2009.morningstar. Tables A-1 through A-6 allow you to customize your analysis by selecting a particular start and end date for equity and size premia over any historical time period (1926–2009). current capitalization at or below $5. 2 © Copyright 2010 Morningstar. Treasury bills. but greater than $1. Reading the Tables The top row of each table indicates the starting year and the left column indicates the ending year. current capitalization below $431 million. Inc.com/DataPublications 1 Expected risk premia are based on the differences of historical annual arithmetic mean return over the period selected. each table consists of six pages of data.S. For additional information regarding Morningstar’s cost of capital related products. Description of Data Long-horizon equity risk premia: Large company stock total returns minus long-term government bond income returns. Mid-cap equity size premia: Returns in excess of those predicted by beta for the portfolio of stocks represented by the 3-5 deciles of the NYSE Amex and Nasdaq National Market System.600 million. Intermediate-horizon equity risk premia: Large company stock total returns minus intermediate-term government bond income returns. Low-cap equity size premia: Returns in excess of those predicted by beta for the portfolio of stocks represented by the 6-8 deciles of the NYSE Amex and Nasdaq National Market System. and features variables used to estimate the cost of capital. Again. All rights reserved.1. find the intersection of start and end dates. but greater than $431 million. In addition. current capitalization at or below $1.600 million.1 Short-horizon equity risk premia: Large company stock total returns minus U. 2 . To find any statistic for a given time period. the income return and total return are the same. Each table consists of six pages and cover: ►Long-horizon equity risk premia ►Intermediate-horizon equity risk premia ►Short-horizon equity risk premia ►Mid-cap size premia ►Low-cap size premia ►Micro-cap size premia Micro-cap equity size premia: Returns in excess of those predicted by beta for the portfolio of stocks represented by the 9-10 deciles of the NYSE Amex and Nasdaq National Market System.S.

S.00 From 1925 to 2009 © Copyright 2010 Morningstar. Capital Markets Year-end 1925 = $1.Wealth Indices of Investments in the U. 3 . All rights reserved. Inc.

7 0. 5 Total Returns Income Capital Appreciation 10.2 8.6 11.6 7.1 4.7 3.0 1.5 9.Summary Statistics of Annual Returns : Basic Series (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Table 2-1 From 1926 to 2009 Geometric Mean Arithmetic Mean Standard Deviation 9.5 18.5 Treasury Bills Total Returns 3.8 4.6 2.7 8.7 2.3 Low-Cap Stocks3.2 3.6 5.4 Intermediate-Term Government Bonds Total Returns Income Capital Appreciation 5. 3 Low-Cap stocks are represented here by CRSP NYSE/AMEX/NASDAQ deciles 6–8.7 0.2 1.5 25.4 20.5 15.7 Micro-Cap Stocks4.2 2.6 Long-Term Corporate Bonds Total Returns 5.8 Mid-Cap Stocks2.9 16.9 4.1 0.7 38.5 11. 5 Source: Calculated (or Derived) based on data from CRSP US Stock Database and CRSP US Indices Database ©2010 Center for Research in Security Prices (CRSP®).5 4.8 4.8 5. 4 Micro-Cap stocks are represented here by CRSP NYSE/AMEX/NASDAQ deciles 9–10.0 3.3 3. capital appreciation return. 5 Total Returns Income Capital Appreciation 11.9 6.0 9. Inc All rights reserved.7 24.6 19.4 9.1 Inflation 3.1 5.4 2.6 32.4 29.1 2.4 5.2 0.1 7.1 5.0 28. 5 Total Returns Income Capital Appreciation 12.3 4.8 Ibbotson Small Company Stocks Total Returns 11. and reinvestment return.5 5.7 3.9 3.3 Long-Term Government Bonds Total Returns Income Capital Appreciation 5.5 1.7 4.6 39.9 6. 2 Mid-Cap stocks are represented here by CRSP NYSE/AMEX/NASDAQ deciles 3–5. © Copyright 2010 Morningstar. The University of Chicago Booth School of Business.5 15. Used with permission.7 13.2 Series Large Company Stocks Total Returns1 Income Capital Appreciation 1 Total return is equal to the sum of three component returns: income return. 4 .

602.691.975.386.600.255 14.85 6.016 5.45 3.570 2.063.725.536 1. Treasury bill.175 214.S.052 4.69 1.790 431.91 10.256 1.429 432.333 685.28 123.169 1.147 3.169 431. Used with permission. Inc.026 1.147 1.01 9.85 1.73 2.111 169.063.73 1.194 1. The University of Chicago Booth School of Business.175 1.007 – – – – – – – – – – 329.7% Long-horizon expected equity risk premium (supply side): Historical equity risk premium minus price-to-earnings ratio calculated using three-year average earnings 3 5. 2009 Yields (Riskless Rates) Long-term (20-year) U.2% Size Premia (market capitalization in millions) 4 Decile Mid-Cap (3–5) Low-Cap (6–8) Micro-Cap (9–10) Breakdown of Deciles 1–10 1-Largest 2 3 4 5 6 7 8 9 10-Smallest Breakout of the 10th decile 10a 10w 10x 10b 10y 10z Size Premium (Return in Largest Company Excess of CAPM) Smallest Company $1.256 214.007 – – – $5. Low-Cap stocks are defined here as the aggregate of size-deciles 6–8 of the NYSE/AMEX/NASDAQ.15 1.836 3.06 1 Maturity is approximate.664 123.516 123.S.985 1.99 14. All rights reserved.6% Equity Risk Premium Long-horizon expected equity risk premium (historical): Large company stock total returns minus long-term government bond income returns 2 6.85 4.37 0.007 – – – – – – 214. 2 Expected risk premium for equities is based on the difference of historical arithmetic mean returns for 1926-2009. Micro-Cap stocks are defined here as the aggregate of size-deciles 9–10 of the NYSE/AMEX/NASDAQ. Source: Calculated (or derived) based on data from CRSP US Stock Database and CRSP US Indices Database ©2010 Center for Research in Security Prices (CRSP®).384. 3 A supply side equity risk premium estimate was first published in Ibbotson’s 2004 SBBI Valuation Edition Yearbook. Mid-Cap stocks are defined here as the aggregate of size-deciles 3–5 of the NYSE/AMEX/NASDAQ.05 12.602.308 684.516 76. 4 Return in excess of CAPM estimation.428.08% 1.936.007 76.S.634 2.075 1. Treasury Coupon Bond Yield 1 4. January 1926–December 2009. © Copyright 2010 Morningstar. The betas used in CAPM estimation were estimated from CRSP NYSE/AMEX/NASDAQ decile portfolio monthly total returns in excess of the 30-day U. Large company stocks are represented by the S&P 500. 5 .536 169.414.85 3. Table C-1 As of December 31.497 123. Treasury bill total return versus the S&P 500 total returns in excess of the 30-day U.429 1.936.49 2.74 0.668 5.692.111 -0.129 432.111 214.600.Key Variables in Estimating the Cost of Capital 2010 Ibbotson SBBI Valuation Yearbook: Appendix C.

6 8.2 10.2 9.4 -28.5 9.1 9.5 7.0 11.8 -11.1 -37.1 13.0 -6.6 -2.8 10.6 12.6 11.6 10.2 10.4 5.7 9.9 10.3 -2.6 5.2 -1.4 12.6 -3.3 11.3 9.1 13.4 11.8 8.2 20.1 3.5 9.4 4.6 1.1 8.1 9.9 6.9 11.4 11.0 10.5 10.6 9.0 11.7 10.4 10.2 12.8 12.7 12.7 5.6 16.0 8.9 10.9 6.3 5.8 11.5 8.4 9.2 7.9 -24.0 12.9 12.6 9.1 8.8 1.8 5.6 7.7 4.8 12.6 6.2 11.2 11.6 6.3 12.9 3.2 11.9 13.2 12.3 10. Table A-1 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1926 7.1 23.2 12.6 -4.7 10.6 5.6 8.0 12.9 10.7 9.8 2.0 6.0 10.7 12.3 10.0 6.1 10.4 5.1 31.4 8.4 7.2 13.4 8.7 11.8 6.1 8.0 12.8 14.7 11.0 11.5 7.8 8.8 8.7 4.7 10.2 12.8 10.8 9.3 5.0 11.6 8.7 12.9 38.6 9.9 13.5 10.0 10.9 12.5 12.4 9.0 -1.9 11.2 10.8 9.0 11.8 7.7 8.3 8.0 -1.8 12.8 3.1 11.2 12.2 9.5 -4.7 9.3 9.0 11.8 -2.3 1.5 11.6 20.Long-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.0 12.4 11.1 -11.0 12.5 10.3 7.9 11.1 6.6 0.8 5.5 11.9 7.4 7.5 -2.3 11.7 10.5 17.7 5.7 8.6 6.0 9.6 5.8 10.6 5.4 9.0 10.2 8.9 10.1 11.8 9.6 8.7 5.2 11.1 8.1 2.5 10.7 -4.3 10.8 2.6 -8.0 8.9 -20.0 10.0 8.0 4.7 9.1 -3.4 10.8 3.7 7.3 3.9 -46.1 6.0 4.2 10.9 8.4 1.5 10.1 8. © Copyright 2010 Morningstar.4 14.7 -2.2 -37.9 10.5 10.6 10.3 11.0 7.0 8.2 50.7 13.3 9.0 10.0 11.8 10.8 9.7 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 34.4 6.0 8.7 7.5 11.7 13.0 8.2 -11.8 10.0 3.9 6.0 2.0 9.8 15.4 -1.0 7.4 3.4 28.7 8.2 13.2 -12.6 10.0 -8.1 7.8 4.9 12.5 -0.8 16.9 9.3 4.1 12.6 5.8 22.1 9.8 11.6 7.1 11.6 7.2 12.0 10.9 23.7 12.1 10.7 4.6 9.0 12.4 10.0 12.2 8.7 9.6 8.4 6.7 12.1 37.5 10.3 8.0 3.9 10.4 9.5 8.9 11.6 11.8 10.5 19.2 9.5 10.7 10.7 4.9 8.4 10.9 11. Inc All rights reserved.4 11.5 12.5 9.9 10.6 8.8 8.1 10.9 10.8 3.8 7.9 13.6 8.6 9.5 11.2 6.6 13.8 12.4 9.6 8.6 6.8 6.2 9.7 9.8 8.1 7.9 8.2 5.8 9.9 9.1 4.3 11.7 -1.4 14.3 1.2 8.0 12.1 6.4 13.4 9.4 9.3 9.0 7.9 13.0 -7.4 6.8 -4.5 10.7 13.7 11.2 6.6 11.9 10.9 8.7 11.5 10.7 9.7 -9.5 9.1 -0.3 9.6 2.0 9.3 10.9 6.4 10.4 9.7 40.7 9.1 7.5 7.9 12.5 12.8 -2.0 6.3 0.7 11.1 -28.9 6.9 13.5 10.1 9.6 9.4 8.8 13.1 0.1 9.1 10.6 10.5 9.4 10. 6 .8 11.1 0.2 8.4 9.4 9.0 27.0 10.1 11.5 8.2 11.7 9.8 9.3 0.7 6.3 7.8 10.1 1.9 12.6 9.6 3.5 12.1 7.2 2.6 6.3 2.0 6.3 11.0 11.4 9.8 12.3 11.0 12.4 11.2 9.5 4.0 11.0 8.0 10.0 11.6 10.4 -28.5 8.8 4.0 11.7 -29.4 9.1 30.0 8.9 18.5 6.6 4.7 8.2 6.5 9.6 5.4 8.9 10.2 10.7 11.5 11.9 11.1 9.0 7.1 0.2 12.2 1.5 9.1 11.3 3.4 9.3 12.0 11.0 13.9 19.1 1.4 9.5 7.2 7.0 11.0 9.2 5.7 10.4 -9.2 8.1 7.1 8.9 13.3 4.8 8.6 3.9 9.8 -7.7 4.6 12.0 8.7 10.6 11.2 7.4 30.5 -3.3 7.4 6.5 11.1 11.2 7.5 6.6 -11.5 2.7 44.7 5.2 10.8 4.1 10.9 13.1 12.4 12.0 -0.0 10.9 12.9 -9.9 8.6 *Standard and Poor’s 500 index total returns minus long-term government bond income returns.4 9.2 10.9 13.7 8.6 5.7 -1.8 4.4 7.6 6.1 9.2 8.4 9.0 8.4 12.1 12.7 12.5 4.0 12.9 11.1 7.7 5.6 10.3 9.0 8.9 10.9 21.0 8.6 10.8 9.9 13.2 8.2 10.8 10.0 4.1 14.3 8.2 6.9 11.0 9.0 -12.2 7.6 3.8 8.0 9.7 10.5 10.6 11.7 10.3 4.5 10.5 9.7 9.9 2.4 11.7 9.8 5.2 12.2 8.5 11.7 8.4 12.

8 7.1 1936 9.2 7.6 8.1 6.4 7.9 9.9 7.8 8.9 7.2 6.7 6.3 7.1 7.9 7.2 7.4 6.8 6.8 8.9 7.3 8.8 6.3 6.5 6.5 8.2 7.0 6.1 6.1 6.2 7.1 9.5 6.6 6.9 8.4 7.2 8.3 8.7 7.0 8.6 7.9 6.0 7.6 6.3 7.5 7.4 7.4 7.4 8.8 7.8 8.7 6.6 6.6 7.0 7.8 8.2 8.1 8.1 6.0 7.8 8.0 8.8 7.6 7.6 6.1 6.0 7.5 1934 9.4 7.4 7.6 6.5 7.0 8.5 7.0 6.2 7.1 8.8 8.3 7.3 7.8 6.6 8.7 8.3 7.2 8.6 8.4 6.9 8.8 8.2 7.0 7.2 7.3 7.7 6.1 7.3 6.1 8.7 6.7 7.6 6.3 6.2 7.2 1938 9.4 7.4 8.1 1931 8.3 7.8 7.2 7.4 7.4 8.6 8.2 9.7 7.4 7.4 8.7 8.4 7.7 7.5 6.4 7.1 6.9 6.6 7.2 7.6 7.2 8.3 7.2 8.2 7.9 8.2 7.1 7.3 7.6 7.4 7.9 6.1 8.0 6.2 8.5 8.6 6.1 6.7 6.8 6.5 6.0 7.8 6.2 6.7 7.9 8.1 7.8 6.5 7.8 6.1 7.4 8.6 8.6 6.1 7.2 6.5 6.2 7.9 6.2 8.8 7.4 7.7 8.8 7.7 6.6 8.9 7.1 8.8 1939 9.4 7.5 7.5 6.7 6.0 6.0 8.0 8.6 7.4 7.0 8.3 6.5 1940 9.1 6.4 7. © Copyright 2010 Morningstar.2 7.1 7.7 6.6 7.1 8.8 7.3 5.9 9.3 7.3 7.2 6.7 7.8 8.3 7.7 7.1 7.3 7.2 1933 10.0 9.3 8.7 8.4 7.6 6.2 8.0 7.2 7.9 7.4 7.8 8.2 7.8 6.1 8.1 7.6 6.5 8.1 7.9 6.7 7.8 8.8 7.9 6.4 7.6 8.3 7.0 7.9 7.8 7.2 7.6 9.2 7.2 8.8 7.6 7.2 7.3 7.9 6.6 6.5 6.9 7.0 7.2 7.7 1927 8.8 6.8 7.3 6.9 7.4 6.0 6.6 6.0 10.3 6.1 8.7 6.3 7.7 6.3 7.7 8.3 7.3 7.0 7.0 7.0 8.8 7.8 6.4 8.4 6.9 9.2 7.1 10.6 7.1 7.5 8.0 7.3 7.3 7.9 8.3 7.1 7.0 8.2 7.8 9.7 1928 8.2 7.4 8.8 7.7 6.0 7.2 6.9 7.1 7.4 7.4 7.1 6.7 7.8 7.4 7.0 7.6 8.0 6.5 6.0 6.1 8.8 6.6 7.9 7.9 8.9 8.4 8.5 6.2 7.4 7.9 8.3 8.7 6.5 6.9 6.5 6.6 7.4 6.5 8.1 7.2 7.5 7.7 8.1 6.9 7.6 8.3 8.1 7.9 6.0 7.2 6.2 7.3 7.4 8.4 7.0 7.7 10.6 1937 8.2 7.8 7.6 7.7 7.0 8.2 7.0 6.8 7.4 6.8 7.5 7.3 7.5 6.9 7.6 9.7 6.5 5.4 6.0 6.6 7.0 7.4 7.7 7.7 8.4 6.1 6.6 6.3 7.8 7.8 7.0 8.3 7.2 7.3 7.2 7.1 8.0 7.8 6.4 8.5 7.7 7.8 8.9 7.5 7.4 7.1 7.2 7.4 8.0 7.5 8.4 6.9 7.3 7.3 6.1 7.3 6.0 7.4 7.8 7.3 6.1 7.4 9.5 7.5 7.1 7.1 7.5 7.6 8.7 7.3 7.8 7.6 7. Table A-1 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1926 8.0 8.6 6.1 7.4 6.2 7.1 7.3 6.4 7.6 7.3 1929 7.6 6.0 8.5 6.4 8.4 6.2 8.4 6.3 8.6 8.7 7.2 8.9 8.2 7.9 1930 7.1 8.0 7.6 8.7 7.5 7.1 7.0 7.9 6.9 7.8 6. Inc All rights reserved.1 7.3 6.1 7.3 7.1 7.4 8.1 7.6 7.8 7.0 7.5 7.8 8.4 6.7 7.2 7.4 6.0 7.6 6.7 7.6 7.1 7.4 8.7 5.4 7.2 7.3 7.5 6.2 7.1 9.3 7.0 7.5 6.8 7.9 7.3 7.7 7.7 7.1 7.8 8.1 7.2 7.8 9.1 6.1 7.2 7.2 9.1 7.5 7.6 7.8 7.1 6.5 7.4 8.9 7.3 8.4 7.8 7.9 8.4 6.1 7.1 7.4 7.6 7.4 7.4 7.4 7.6 1932 10.2 8.1 7.2 7.3 7.7 6.7 10.1 7.2 7.9 6.0 6.7 8.9 8.9 7.9 7.2 8.4 8.5 7.0 8.9 8.Long-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.7 8.4 7.8 7.0 7.3 7.3 7.5 7.8 8.4 8.2 6.0 7.6 6.5 7.4 8.7 8.6 8.3 7.7 6.4 7.5 7.3 6.5 7.4 7.7 7.2 7. 7 1935 10.2 6.5 6.9 9.3 7.5 7.5 7.1 8.6 7.6 7.7 .6 9.7 6.7 7.7 6.1 7.4 7.0 8.2 7.9 *Standard and Poor’s 500 index total returns minus long-term government bond income returns.8 8.3 6.0 6.

1 11.7 11.3 15.9 15.2 14.2 -10.8 -3.2 14.2 6.3 16.9 14.3 15.7 5.2 8.8 22.9 10.Long-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.0 13.3 10.3 13.6 10.0 18.3 13.3 12.4 12.5 13.3 12.4 10.6 12.6 12.4 12.9 13.8 22.2 16.5 23.6 14.0 16.0 15.1 10.8 12.8 18.1 10.5 10.7 13.4 10.7 12.4 19.6 18.9 17.3 11.2 15.4 10.8 16.4 13.6 11.4 14.3 14.8 12.9 20.9 13.8 39.6 15.8 12.0 12.1 11.1 14.1 12.6 3.4 17.6 19.7 11.3 7.2 10.2 11.7 16.6 12.3 14.7 15.9 20.3 12.7 11.5 12.0 11.1 22.8 14.0 16.9 16.3 16.1 16.0 15.3 25.0 8.8 14.2 16.4 13.6 *Standard and Poor’s 500 index total returns minus long-term government bond income returns.2 18.6 13.2 9.3 16.9 12.0 21.3 16. Inc All rights reserved.6 22.2 9.2 13.7 14.1 14.2 13.9 10.7 17.1 10.1 11.6 14.2 15.5 9.0 13.9 12.5 10.0 15.5 14.2 16.7 10.6 15.4 21.8 17.8 12.5 34.1 12.7 14.1 14.2 13.5 11.5 14.4 19.1 13.3 11.9 15.7 12.7 15.9 15.9 12.2 10.2 12.6 12.1 3.2 14.3 10.2 15.1 17.1 8.0 24.4 11.1 16.0 14.5 14.0 13.6 20. © Copyright 2010 Morningstar.1 14.7 11.1 13.8 9.8 9.8 16.4 12.4 16.1 14.0 13.8 14.8 10.4 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 17.6 22.7 13.2 23.4 18.3 15.5 14.7 13.4 11.5 15.2 7.4 15.5 12.7 19.7 12.6 14.3 17.3 17.3 13.6 14.6 13.9 13.7 15.0 16.2 12.0 11.1 9.7 10.8 13.8 10.6 20.4 14.3 15.7 11.4 10.7 12.6 14.8 16.5 14.6 12.0 17.9 16.0 13.1 13.2 13.0 15.0 9.1 14.7 15.8 13.0 12.6 25.4 12.0 13.3 16.3 12.8 23.6 14.8 11.5 13.6 20.4 8.8 15.3 11.0 14.2 16.6 10.3 8.9 12.4 12.0 17.5 14.7 14.1 3.9 10.7 13.0 12.4 13.3 3.6 23. 8 .5 20.1 28.8 7.6 13.5 10.3 -1.4 49.8 11.2 20.9 11.6 15.1 9.9 11.6 11.7 12.9 14.7 11.6 18.7 16.0 10.4 12.2 10.7 14.7 12.0 13.5 23.9 9.5 9.2 13.7 14.4 17.0 11.7 16.1 11.8 9.9 13.6 14.2 12.9 19.6 13.0 13.1 17.2 9.2 10.6 14.1 12.2 10.5 14.6 11.6 13.4 24.7 29.7 16.3 13.5 12.6 14.8 13.3 27.4 12.8 17.4 9.5 13.1 -3.2 13.7 15.7 14.4 9.9 21.7 12.3 13.6 16.7 11.9 13.7 9.8 17.6 15.8 16.1 14.9 20.1 9.9 14.8 16.9 12.8 11.7 12.8 10.5 2. Table A-1 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1941 -13.2 6.1 12.4 13.9 13.6 11.5 17.6 22.7 17.8 16.

7 7.8 7.7 7.7 7.8 8.0 6.5 7.3 6.4 7.8 7.5 6.4 7.4 7.7 7.1 8.3 7.0 8.3 7.8 7.6 8.4 7.0 5.4 7.4 7.0 8.3 6.6 7.8 7.4 6.9 7.3 6.4 7.6 6.3 7.3 6.2 7.6 7.1 6.2 8.0 5.3 4.8 5.1 8.9 7.3 8.5 7.3 6.7 7.1 7.5 4.3 4.9 8.3 8.2 8.2 7.0 7.4 7.1 7.3 6.1 6.1 6.7 7.3 7.8 1945 10.2 7.3 7.3 6.3 8.9 5.1 6.7 7.5 5.2 4.2 7.6 6.7 6.0 6.6 7.2 6.5 7.1 11.3 7.3 7.0 7.7 7.8 7. Table A-1 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1941 10.7 6.3 7.1 6.4 5.0 7.4 7.1 7.0 8.2 7.3 6.1 7.5 7.6 7.0 6.3 6.6 6.4 6.4 7.5 1949 10.2 8.2 6.1 8.2 5.0 9.9 5.0 10.7 7.6 5.1 7.4 4.1 7.7 8.1 7.4 5.0 6.6 8.3 8.5 7.1 9.3 7.6 7.0 6.9 8.2 7.6 6.9 8.8 7.2 9.5 7.6 8.6 7.5 7.4 7.5 7.2 5.5 8.4 7.1 4.9 6.6 4.6 5.2 7.4 8.2 7.7 8.1 7.3 7.7 6.8 6.7 7.5 9.7 9.8 8.2 7.2 6.2 6.1 7.7 8.6 7.0 7.3 6.5 8.3 8.4 5.2 6.0 7.4 10.3 7.8 8.1 7.0 7.1 1944 10.6 7.7 7.9 7.6 6.3 10.6 6.8 7.1 8.6 7.9 7.6 7.8 7.3 5.1 8.7 8.4 8.9 5.1 7.9 8.4 8.6 6.0 6.6 8.5 7.3 5.9 6.1 6.7 7.3 7.4 7.6 7.4 6.6 5.0 8.6 8.5 1948 10.4 7.7 6.8 6.4 9.9 6.9 6.3 6.7 7.5 7.5 9.9 7.8 9.2 8.7 6.7 5.9 5.0 7.7 7.4 7.4 9.3 7.2 7.7 6.2 8.7 7.4 8.2 7.2 5.0 6.8 7.3 7.8 7.8 8.8 4.3 6.9 8.1 7.5 7.3 7.1 7.1 5.0 7.4 7.0 7.0 7.5 7.7 7.6 5.7 8.6 7.1 6.9 7.9 8.3 8.1 7.7 8.4 6.5 7.0 7.2 6.3 7.3 10.6 6.8 7.8 7.7 5.6 7.9 7.4 8.2 1943 10.2 6.6 7.5 8.6 7.4 6.6 8.9 7.4 6.4 8.0 5.9 6.9 8.4 5.9 6.8 8.1 7.2 7.3 8.7 8.2 8.3 7.2 6.2 7.5 6.5 6.4 8.5 7.9 7.0 6.0 8.9 7.8 5.2 6.8 7.8 7.0 7.7 8.2 7.4 7.4 6.0 7.0 7.2 6.6 8.6 8.2 6.8 6.7 6.7 7.Long-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.5 7.1 6.6 7.4 7.4 7.0 1952 8.7 8.0 8.2 8.2 6.6 7.2 10.2 7.8 6.7 9.3 7.5 7.7 7.5 4.1 7.3 8.4 9.1 8.8 6.7 6.1 10.1 6.8 10.9 7.8 7.7 1946 9.9 6.5 7.3 6.6 8.6 7.0 6.0 7.6 5.5 8.6 8.2 1947 10.7 8.6 7.0 7.1 7.7 8.2 5.4 8.3 5.3 6.1 10.2 7.6 5.1 4.6 5.9 5.4 8.7 7.9 9.4 8.6 7.1 8.7 6.8 8.5 8.5 7.7 8.7 7.7 9.9 9.2 7.4 8.2 8.5 5.9 8.6 5.4 6.1 8.3 7.9 7.6 6.9 7.9 7.5 6.1 8.6 7.8 9.6 7.4 8. Inc All rights reserved.5 7.0 6.6 8.7 6.1 8.2 7.1 7.4 6.3 7.0 7.5 7.8 6.7 7.7 6.9 7.9 6.0 8.4 6.4 1951 9.2 7.2 7.0 7.4 6.0 7.7 4.4 7.8 6.5 8.8 6.4 7.2 8.4 6.5 7.1 5.4 5.7 7.3 6.5 6.4 7.3 7.4 7.7 6.6 6.1 7.2 6.4 7.9 6.1 6.2 7.8 7.0 .8 7.9 7.8 6.7 8. 9 1950 10.1 7.6 7.5 6.5 8.1 6.0 6.6 7.3 7.8 7.5 7.8 6.8 7.8 7.9 8.2 7.4 8.5 7.9 8.4 9.1 6.0 7.1 5.9 1942 11.2 8.7 7.2 5.6 6.6 10.4 7.0 8.2 6.5 7.5 7.8 1955 6.0 8.3 6.2 9.2 8.5 8.4 8.8 6.3 6.8 6.9 8. © Copyright 2010 Morningstar.9 5.1 7.6 1954 9.1 9.4 5.3 6.5 7.4 7.2 6.1 6.2 7.8 1953 8.2 6.6 6.3 6.4 8.7 6.1 7.4 6.6 5.8 6.2 8.3 6.0 8.1 8.5 6.8 5.3 7.0 7.9 6.8 8.9 8.2 7.7 8.8 6.0 6.3 5.4 8.6 6.5 3.4 5.9 6.4 8.7 6.6 7.7 7.0 8.0 6.4 8.8 7.3 7.2 6.7 7.9 7.4 6.4 6.5 4.9 6.4 7.8 7.6 *Standard and Poor’s 500 index total returns minus long-term government bond income returns.5 8.4 9.

9 15.8 5.0 14.9 9.3 -12.5 5. 10 .6 2.9 8.7 3.6 -4.5 6.6 7.3 6.6 6.1 24.2 40.0 5.1 6.4 3.5 -8.2 12.9 6.0 -1.2 18.5 6.8 10.4 6.6 23. Table A-1 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1956 3.3 7.2 3.1 3.2 8.9 7.7 4.4 10.1 9.4 12.4 7.9 8.4 8.4 19.9 2.7 16.6 2.7 5.9 11.2 2.1 5.0 8.5 10.7 7.5 7. Inc All rights reserved.5 6.8 9.1 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 -14.9 12.4 7.3 -3.5 5.2 -14.7 -2.8 9.7 2.7 10.9 -3.1 12.2 12.4 4.3 4.5 7.3 6.5 -1.Long-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.5 3.3 5.2 6.8 9.3 9.3 2.6 7.9 *Standard and Poor’s 500 index total returns minus long-term government bond income returns.5 9.9 6.6 13.3 7.6 -5.9 8.4 4.3 2. © Copyright 2010 Morningstar.2 9.9 5.3 10.1 4.3 11.0 6.2 6.3 7.4 6.1 4.5 1.7 7.1 4.8 7.7 7.5 3.8 1.8 0.4 6.2 6.7 0.8 2.2 5.3 5.7 9.4 5.6 6.8 8.4 -3.7 8.9 -14.7 4.

6 4.8 3. 11 1965 1.7 3.9 2.8 1.4 4.5 4.1 2.7 1.0 4.8 2.3 0.9 4.8 4.6 1.4 5.6 2.6 3.3 5.6 5.4 4.1 5.1 2.6 4.5 3.1 5. © Copyright 2010 Morningstar.7 6.9 4.7 4.3 2.8 0.5 5.9 4.5 -1.6 4.2 -1.3 3.1 4.2 2.3 4.0 3.8 4.7 1.2 3.3 2.7 7.3 4.1 4.6 5.2 3.4 3.2 4.2 4.9 3.1 -0.2 5.1 -0.8 2.8 5.3 3.0 -0.8 1.1 4.8 4.9 -0.6 5.2 6.1 1968 -0.9 3.2 5.9 4.1 5.5 4.1 5.2 4.5 3.8 3.3 4.8 6.1 5.6 4.3 4.2 3.3 4.1 5.3 3.6 1.2 4.2 4.6 4.4 3.2 4.9 6.7 4.3 3.4 5.2 4.0 4.4 2.1 2.8 0.2 3.6 3.7 -7.2 0.6 2.9 4.3 2.0 2.4 4.8 4.3 5.1 2.8 1966 0.5 3.6 4.8 3.0 4.2 2.5 4.9 0.5 1.0 0.4 1.8 3.1 1.0 2.3 4.7 1970 2.2 4.5 4.9 5.2 3.9 5.2 -0.1 0.9 -0.3 4.0 4.9 4.3 2.6 4.3 3.1 4.5 -1.4 5.1 .1 4.6 1.2 4.7 4.4 2.9 1.1 1.4 5.1 3. Table A-1 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1956 5.4 3.0 5.0 2.2 3.3 1.3 2.9 -2.9 5.5 3.8 6.8 5.6 4.9 0.1 -0.6 3.8 6.4 -0.5 3.2 2.7 3.5 5.5 1.2 4.6 2.8 4.9 1.0 -1.6 5.1 5.1 2.8 4.2 3.2 3.4 3.1 -0.8 3.2 1.6 1.4 5.0 2.1 1.2 4.4 3.6 4.8 2.7 5.2 1960 3.2 4.4 3.2 4.1 4.9 1.6 4.4 4.8 3.6 6.5 1.9 -3.5 4.7 4.2 6.8 4.1 2.7 5.3 3.8 4.0 4.7 3.8 3.4 4.2 3.3 6.6 3.2 5.6 5.9 4.7 4.6 3.0 6.7 3.9 5.7 5.8 5.9 4.0 3.4 5.6 3.3 -1.7 3.5 4.Long-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.6 2.8 0.8 3.1 5.2 4.4 3.3 4.6 3.8 5.4 3.1 4.4 4.3 4.7 4.8 5.4 0.3 0. Inc All rights reserved.3 4.7 3.3 4.8 3.2 4.1 5.8 4.3 1964 2.1 3.3 5.3 1.7 6.5 1.0 5.1 3.1 4.5 1957 5.2 2.5 4.8 4.4 4.9 *Standard and Poor’s 500 index total returns minus long-term government bond income returns.4 2.3 1962 2.7 4.8 0.6 4.0 4.4 5.0 0.4 -0.5 4.2 3.5 2.3 3.4 3.2 5.2 4.0 2.1 -3.1 5.4 4.0 5.0 4.0 4.2 -2.0 1.1 5.7 1967 3.3 5.9 2.7 4.7 6.9 4.3 2.0 3.3 4.6 2.3 4.5 -3.4 5.4 4.2 5.3 3.9 3.0 0.8 4.8 4.7 5.6 4.0 3.2 4.2 3.3 4.9 3.0 5.9 5.6 4.9 2.3 0.4 4.9 4.6 5.1 3.9 4.7 4.0 3.2 0.6 4.2 2.6 5.2 2.8 1.8 0.1 3.6 4.5 6.4 4.2 2.7 3.2 1.0 4.5 1958 6.2 4.7 3.2 2.1 1961 4.3 3.9 3.4 3.5 4.8 4.0 4.5 3.4 2.1 2.0 4.8 4.7 3.7 5.5 3.2 2.5 3.1 1.1 0.3 1.1 2.4 2.8 2.9 4.2 2.3 2.6 4.9 4.4 2.3 3.8 3.0 -0.3 3.3 1.3 0.1 5.6 3.1 0.2 4.5 4.4 3.9 3.5 4.8 4.4 3.7 4.9 5.1 5.9 3.8 3.4 4.8 0.5 6.6 3.1 2.6 3.2 3.0 3.6 4.4 2.8 5.7 6.1 5.9 1959 4.4 0.7 3.4 4.9 1963 4.1 4.2 4.9 3.6 5.2 5.3 1.6 3.5 3.9 5.3 4.2 3.4 2.1 0.0 5.9 3.8 5.8 4.9 -4.4 2.9 4.7 -0.2 6.4 5.3 4.1 -3.3 1.5 5.4 5.3 -0.9 3.4 5.2 3.3 5.1 4.1 4.1 4.8 5.8 5.7 3.2 3.8 7.9 4.8 4.5 3.7 1.5 5.6 2.3 4.3 4.0 5.6 -1.2 3.3 4.0 4.2 4.4 1.0 2.2 2.8 3.7 4.4 5.9 5.3 2.5 4.4 5.4 3.8 3.1 4.4 6.7 4.9 6.4 2.8 4.7 3.4 4.7 1969 -3.3 3.3 4.3 0.5 4.5 4.0 -6.2 3.3 2.9 3.2 3.2 3.7 2.9 6.7 2.0 5.9 4.9 2.5 -2.8 6.3 2.3 4.5 3.5 4.4 4.5 3.4 4.2 6.7 5.0 5.6 5.9 2.0 4.5 -8.4 4.9 4.6 3.7 1.0 1.2 5.5 3.4 0.5 1.2 1.6 3.4 2.3 4.3 2.8 3.3 3.7 4.8 3.7 3.5 3.4 2.2 1.5 4.3 0.1 4.1 6.6 5.4 4.1 4.7 -2.7 6.4 5.4 -1.0 2.7 3.8 -0.4 4.9 3.7 3.

7 4.1 8.6 4.7 6.3 6.8 6.5 5.3 9.1 7.0 6.6 6.0 8.4 5.5 6.9 5.2 4.2 -21.0 7.2 6.8 7.9 6.6 8.8 6.8 6.1 6.8 6.0 8.4 5.3 6.6 0.7 9.7 7.1 9.0 1.9 6.0 0.5 8.0 0.5 6.4 8.9 7.1 2.2 -27.5 2.7 5.4 7.0 8.0 4.0 5.0 5.7 -0.9 7.6 5.0 6.7 3.7 6.9 0.4 7.7 8.4 3.2 7.4 6.3 7.3 7.1 4.5 6.0 5.3 -7.7 8.6 5.8 4.6 8.6 5.4 5.4 8.7 -1.6 8.7 10.9 4.6 5.9 3.8 6.2 4.3 9.2 6.0 9.0 1.2 0.1 -0.8 7.5 10.4 7.8 10.1 5.1 5.7 6.1 4.3 5.0 4.8 7.5 10.9 6.7 3.0 6.3 6.3 6.2 4.8 5.3 6.2 4.4 5.6 7.7 7.9 8.9 3. © Copyright 2010 Morningstar.1 5.4 2.4 4.1 5.5 0.8 4.8 5.2 6.3 4.6 7.7 5.5 6.1 9.8 16.7 6.3 9.1 7.2 10.2 5.7 2.9 6.5 7.3 8.0 8.3 8.6 6.8 7.8 8.4 5.1 6.2 0.3 7.6 5.5 -8.9 -3.7 7.2 3.8 5.9 5.7 6.9 6.0 1.5 6.4 5.2 2.9 4.7 6.4 7.5 4.1 6.1 6.4 -16.1 5.2 -2.1 0.3 5.4 7.0 2.6 7.6 12.0 10.8 3.8 7.5 9.8 4.1 5.4 7.0 7.8 5.4 5.0 5.1 6.0 6.2 9.8 4.3 7.1 5.2 3.4 8.3 5.8 6.8 5.1 2.8 5.6 -2.6 *Standard and Poor’s 500 index total returns minus long-term government bond income returns.3 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 13.3 5.8 9.2 6.7 4.2 2.6 6.1 6.2 3.3 4.4 7.3 3.2 3.4 -4.6 4.5 6.5 7.2 0.4 4.7 11.6 2.0 6.1 7.1 10.6 6.7 3.5 1.8 1.4 2.9 5.1 1.9 3.4 2.8 5.5 3.0 7.0 6.4 7.4 3.9 3.1 3.4 3.7 9.2 6.1 4.8 -4.6 5.3 3.0 6.9 6.1 5.3 5.8 5.9 -0.9 10.4 8.5 7.2 8.1 -4.6 6.9 4.5 5.8 -2.9 4.9 4.4 4.7 4.5 3.9 6.7 6.1 5.0 -13.4 1.2 6.9 4.7 6.1 7.6 7.0 6.6 7.0 6.4 5.4 6.4 7.9 5.5 3.5 5.0 7.8 16.0 5.0 6.7 5.0 7.3 6.6 5.8 9.6 6.2 8.0 5.9 8.5 3.9 4.6 5.5 8.7 4.2 6.0 3.2 6.2 7.9 7.5 4.8 8.7 3.9 9.3 7.4 7.5 6.0 7.5 22.9 -1.1 7.0 6.1 -14.5 6.7 10.9 9.8 7.8 11.2 6.9 7.5 15.5 -5.3 4.8 6.3 6.5 4.9 10.2 5.1 6.5 5.5 5.8 -0.9 5.6 6.6 6.3 4.2 6.6 10.7 7.5 -0.2 5.6 10.9 5.2 7.5 6.3 4.4 4.6 9.9 6.1 4.7 3.8 -1.3 5.7 -1.2 6.2 5.2 20.8 11.2 6.4 3.8 5.0 9.7 8.2 3.2 2.2 6.0 6.6 5.7 29.1 4.0 4.9 1.5 2.3 2.5 2.6 4.6 2.9 3.9 6.3 5.8 8.1 6.8 9.2 5.6 3.5 8.1 7.9 8.9 4.1 6.9 4.6 7.6 4.9 6.0 9.5 4.6 7.4 7.1 5.9 3. 12 .9 5.0 8.1 9.2 6.9 7.2 5.1 4.5 8.2 1.5 -4.6 4.6 5.7 4.0 -33.9 8.8 5.4 -0.1 6.7 10.4 4.9 7.7 4.2 22.5 6.0 4.0 9.1 6.4 6.4 9.3 7. Table A-1 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1971 8.4 4.9 7.1 3.8 9.6 4.1 8.6 6.6 10.5 6.6 9.5 10.8 7.3 -0.Long-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.8 6.8 4.7 7.3 5.0 7.9 6.9 6.1 1.7 5.7 7.2 9.0 4.4 4.8 0.7 4.9 1.7 6.2 6.6 7.4 4.0 9.7 -2.0 -8.5 4. Inc All rights reserved.0 6.7 -0.

7 12.7 8.6 9.1 -5.4 5.1 11.1 7.4 7. Table A-1 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1986 9.1 3.9 9. Inc All rights reserved.4 6.0 4.9 -2.6 4.9 6.4 8.4 2.8 -11.6 15.2 11.3 8.2 1.7 7.0 0.2 3.4 6.2 22.7 6.2 4.4 7.1 9.8 -2.6 8.6 15.3 12.0 0.6 11.2 3.2 9.6 4.8 21.4 6.0 9.7 24.6 6.6 -0.8 5.1 14.4 14.7 2.7 4.5 -0.5 6.2 5.8 3.7 *Standard and Poor’s 500 index total returns minus long-term government bond income returns. © Copyright 2010 Morningstar.4 8.1 -11.4 -6.9 4.7 6.0 5.7 3.1 10.3 5.7 21.8 7.9 6.7 7.8 9.5 13.3 11.5 -0.2 13.4 10.5 10.7 11.9 5.0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 -2.3 8.2 11.0 4.2 8.0 6.1 7.0 4.3 4.6 5.7 12.7 4.0 16.1 7.1 7.0 0.6 5.7 6.3 6.9 7.6 11.1 6.3 -4.6 1.1 7.5 0.8 17.5 5.8 6.2 -6.0 11.6 6.9 5.6 10.0 -15.3 4.4 1.0 5.3 4.1 20.3 -2.0 6.5 5.0 10.2 5.6 5.5 7.2 26.4 13.2 15.2 8.8 4.5 7.9 2.0 9. 13 .4 5.4 8.4 10.3 12.5 6.7 -3.6 6.7 10.2 -5.6 5.7 5.6 3.4 9.1 7.7 7.3 6.1 15.3 30.8 11.7 8.8 22.2 6.6 4.5 24.1 5.5 5.6 -2.0 6.1 18.2 6.6 3.8 6.3 -4.3 16.7 13.5 6.5 -20.7 9.5 9.0 2.1 22.6 -16.1 3.0 5.3 12.7 5.5 7.2 5.3 7.Long-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.7 2.1 22.1 4.0 11.4 24.2 -5.5 5.0 11.3 8.5 3.6 7.1 4.6 8.3 8.1 -2.3 5.4 8.0 6.2 -9.3 6.5 6.0 10.2 6.2 22.5 4.6 6.8 11.5 -2.5 6.1 6.4 13.4 0.0 23.8 13.0 11.2 4.5 4.5 7.0 11.0 6.0 11.6 6.6 12.9 6.3 9.0 3.5 4.7 6.0 5.2 1.6 14.9 6.9 13.7 6.1 5.7 19.9 7.5 8.2 -0.5 7.0 5.4 6.1 7.0 7.0 6.9 -1.2 0.2 7.5 1.4 -4.2 17.6 6.1 1.

Inc All rights reserved.7 0.3 0.6 -7. 14 .0 -7.7 4.6 2.9 14.1 0. Table A-1 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 2001 -17.9 -1.7 -1.7 -0.9 10.9 0.6 -20.0 5.0 3.3 8.4 2002 2003 2004 2005 2006 2007 2008 2009 -27.9 3.0 *Standard and Poor’s 500 index total returns minus long-term government bond income returns.5 -4.3 5.Long-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.7 0.0 -0.9 -0.4 -5.1 -3.4 -22.1 5.7 -0.5 -5.6 23.6 -2.3 -3.2 5.7 2. © Copyright 2010 Morningstar.7 4.9 -9.4 -1.4 -9.3 11.0 10.2 23.9 -41.8 -3.

4 9.7 7.2 6.4 20.2 10.7 8.3 8.0 13.2 13.9 1.7 7.2 -11.7 3.8 10.9 10.6 11.8 10.0 13.5 10.0 12.5 14.1 7.6 0.2 13.9 10.7 3.0 10.8 13.4 4.3 10.7 9.4 8.0 20.2 11.5 6.8 -28.0 12.8 10.9 12.5 10.9 13.8 7.3 9.2 10.3 12.0 11.9 6.5 10.5 0.1 11.5 11.7 10.5 12.0 12.7 14.9 13.6 10.6 5.3 11.4 6.6 9.5 12.7 13.5 5.0 12.5 3.8 -1.1 11.0 10.0 13.9 -2. © Copyright 2010 Morningstar.7 11.3 -28.7 13.6 12.2 1.6 -4.6 8.9 10.0 12.1 9.7 0.2 17.0 10.9 11.4 12.1 10.7 5.3 17.0 7.0 37.7 13.2 12.5 6.8 11.3 4.2 3.6 13.4 9.9 10.1 *Standard and Poor’s 500 index total returns minus intermediate-term government bond income returns.2 8.1 2.9 29.0 12.7 -0.2 13.8 14.7 13.2 13.8 13.9 27.0 -4.2 22.8 9.0 10.8 11.0 9.5 8.5 9.1 12.7 11.6 10.2 12.2 9.4 6.9 8.4 12.4 8.6 4.4 12.6 10.5 -20.1 12.3 7.0 13.9 7.2 11.6 32.7 11.9 11.8 13.6 -8.3 11.7 -6.7 20.3 14.9 -6.6 6.8 7.6 9.6 9.2 3.7 3.5 8.9 8.9 14.2 11.6 12.8 14.2 23.4 13.9 8.0 13.5 -0.7 9.7 -11.0 12.0 13.0 9.8 20.7 2.9 10.9 5.2 9.6 9.9 8.6 4.3 -4.4 8.3 11.3 10.6 7.1 10.3 9.0 7.6 14.8 14.0 5.5 14.9 10.3 5.2 6.1 13.1 13.9 3.3 9.8 14.7 7.5 -29.7 13.0 11.7 4.1 5.2 -37.2 4.6 39.2 10.1 9.7 51.0 1.6 6.2 40.5 12.9 17.8 -11.4 -2.8 31.5 5.6 -36.4 13.3 9.2 9.3 3.9 12.3 -2.7 12.2 9.0 5.1 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 34.1 11.3 10.9 11.5 10.8 13.6 9.9 1.9 12.2 11.0 10.9 8.4 9.3 10.3 2.2 12.2 8.2 13.6 11.6 11.9 9.7 11.1 13.5 11.3 10.4 10.1 7.3 12.8 11.0 10.2 12.8 11.8 9.3 11.7 11.8 8.0 9.8 7.2 10.7 7.4 12.7 10.2 11.3 12.4 11.2 -11.2 12.3 8.8 10.5 2.6 10.5 5.3 8.2 -1.9 12.9 13.2 8.6 12.1 10.2 13.4 9.7 -9.0 9.7 13.2 9.5 1.2 10.7 12.0 10.7 13.7 11.8 7.7 11.3 8.5 7.6 10.8 9.6 11.8 11.5 10.2 45.3 11.5 7.7 14.9 4.5 -1. Inc.5 2.5 11.8 9.4 3.0 2.2 7.4 8.3 10.0 9.3 7.9 11.4 10.1 10.8 14.6 11.1 13.5 4.7 7.4 11.4 12.5 12.2 10.8 13.4 -2.8 9.4 9.8 8.4 6.0 5.0 14.1 9.2 4.6 10.4 8.3 -1.2 12.0 12.2 9.8 -8.3 10. All rights reserved.3 9.1 9.7 -0.1 4.7 11.6 12.4 9.7 19.1 9.8 9.0 10.7 7. 15 .9 10.Intermediate-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.8 15.8 19.0 9.3 11.2 -1.0 6.5 10.0 9.5 10.6 8.6 11.3 12.0 3.4 11.8 10.3 12.2 8.5 8.9 5.8 6.7 8.7 11.4 8.8 13.7 10.9 13.8 10.3 11.7 11.5 -3.8 7.4 10.9 10.8 7.6 1. Table A-2 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1926 7.4 9.7 4.3 8.7 9.3 13.0 10.7 10.5 5.4 9.8 8.4 9.1 10.6 11.9 11.0 12.7 12.9 10.0 8.2 7.6 -12.5 10.4 11.2 10.5 10.9 12.7 7.5 11.6 9.6 5.9 12.0 11.2 9.6 4.3 10.6 -3.7 12.7 14.7 7.6 12.5 0.6 11.6 12.7 11.3 10.0 9.9 5.6 10.4 10.8 11.1 8.2 -2.7 7.8 5.4 10.5 12.2 7.8 10.5 9.5 11.2 10.5 9.4 10.6 12.3 11.8 6.7 7.1 11.5 5.5 10.1 9.3 -29.5 10.0 7.9 9.6 16.2 3.7 10.3 6.0 9.4 4.9 11.0 11.6 9.8 10.6 11.7 15.6 12.9 1.7 12.1 11.1 10.0 9.9 11.2 13.7 5.9 9.1 13.1 11.8 -7.8 11.2 6.5 5.3 6.1 10.3 9.8 8.5 -2.2 10.8 13.1 13.7 14.4 11.0 9.0 9.6 2.1 12.4 5.9 8.8 14.5 11.1 5.3 12.8 12.6 11.9 10.7 9.1 -24.3 13.6 7.2 7.6 9.5 12.8 7.4 13.9 11.5 11.3 7.8 8.6 9.3 -1.4 10.7 8.4 30.5 7.2 -0.3 7.5 10.2 10.7 -10.8 5.4 12.5 12.6 24.4 6.2 9.1 9.5 13.7 9.9 2.4 6.2 12.6 4.7 11.6 7.3 -46.7 7.2 -8.

9 8.5 7.4 8.0 8.2 7.1 9.3 6.0 7.7 7.2 7.6 7.9 8.3 7.8 7.6 10.5 7.3 8.7 7.8 8.2 8.8 7.7 8.1 9.8 7.7 7.8 8.6 8.6 6.5 7.2 8.6 6.5 7.3 8.0 10.0 9.2 8.0 9.2 7.0 6.3 8.2 6.2 7.8 6.4 8.6 8.1 7.6 8.2 7.3 8.9 8.6 7.3 7.0 9.5 8.6 *Standard and Poor’s 500 index total returns minus intermediate-term government bond income returns.6 6.1 7.8 6.8 6.3 7.3 7.7 7.3 7.5 8.1 6.2 8.5 7.6 7.8 7.2 8.5 7.2 8.6 7.5 7.9 7.7 6.6 7.6 7.6 7.3 7.1 8.Intermediate-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.4 8.0 8.6 8.0 9.1 8.7 7.6 7.7 8.9 7.5 9.3 8.0 7.7 7.0 7.0 8.8 8.7 9.8 7.7 8.1 7.1 7.1 7.7 7.0 8.7 7.3 7.0 8.8 7.4 6.8 8.8 7.7 9.9 7.8 7.4 9.9 7.8 7.2 8.0 7.4 7.6 7.5 8.2 6.8 8.3 7.4 7.9 7.2 8.7 8.8 8.1 7.8 7.8 8.0 7.7 7.7 7.6 7.6 7.6 7.5 7.5 7.9 7.3 7.8 8.1 8.2 8.0 7. 16 1936 9.3 8.5 6.6 7.1 7.1 8.6 7.1 8.9 8.0 8.1 7.4 8.8 9.3 7.9 8.3 7.5 7.5 7.9 7.1 8.5 7.9 6.6 6.3 8.5 8.2 7.9 9.4 8.9 9.4 7.8 8.9 8.7 6.7 7.7 8.7 8.7 7.7 7.3 8.5 7.6 8.8 8.4 1930 8.9 7.6 7.5 9.4 7.3 8.8 7.4 7.1 8.2 6.2 7.0 8.8 6.3 8.9 8.5 8.8 6.9 6.6 7.7 8.6 6.0 7.1 7.8 7.9 8.8 9.4 6.2 8.3 8.9 7.5 6.9 8.6 7.6 7.6 6.0 8.0 1934 10.0 7.2 7.6 7.3 7.7 7.6 7.8 8.5 7.1 1937 8.5 6.2 7.7 8.0 7.6 7.8 7.6 8.2 9.3 9.2 9.6 7.7 7.0 9.1 1928 8.7 8.8 8.1 7.8 7.4 8.9 10.5 7.6 8.9 7.3 8.9 8.9 7.3 7. All rights reserved.8 8.0 8.1 8.1 8.6 7.4 7.2 7.0 8.3 7.0 6.9 9.8 6.9 9.4 8.6 7.6 7.2 7.1 8.8 7.1 7.1 8.2 7.9 7.5 7.8 7.8 8.2 7.6 7.3 8.5 8.9 8.7 7.9 7.6 7.1 7.5 8.5 7.5 8.6 6.0 6.5 7.7 8.9 7.6 9.3 9.7 7.9 7.4 7.1 8.4 6.8 7.6 7.0 7.6 8.6 7.6 6.1 8.9 7.2 6.1 7.5 6.1 1932 10.5 6.0 8.4 1939 9.6 7.9 6.4 8.7 7.8 7.9 7.7 6.0 7.3 8.9 7.0 8.5 8.8 7.2 8.8 6.1 6.4 7.5 6.9 7.7 8.4 8.0 8.2 8.1 8.2 7.0 8.6 7.6 7.0 9.9 8.5 10.1 7.6 8.4 7.2 7.8 7.5 7.6 7.5 9.6 8.9 8.2 9.6 8.7 9.4 7.6 8.0 7.1 9.6 1931 9.0 7.2 7.3 7.6 7.8 1938 10.1 8.2 7.6 8.3 7.8 7.3 9.2 7.6 7.4 8.6 7.5 7.3 7.4 8.3 7.1 7.8 7.8 1933 11.7 7.0 7.8 9.0 7.9 7.7 8.1 7.2 8.3 8.2 10.7 7.4 7.0 8.5 8.3 7.5 9.9 8.3 9.6 8.3 6.0 7.4 7.9 8.5 7.2 7.8 9.4 7.4 9.0 6.6 7.6 8.4 9.1 7.9 7.5 7.6 8.2 7.9 8.7 7.4 6.4 8.3 7.2 9.0 7.1 7.7 7.6 7.6 8.6 7.9 7.7 9.2 8.8 8. Table A-2 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1926 9.2 7.0 1940 10.6 7.4 8.2 7.6 8.4 7.2 11.6 7.0 8.6 8.2 1927 9.9 7.2 8.8 7.9 9.0 7.9 9.8 7.5 8.2 7.8 7.0 8.4 8.1 7.4 8.5 8.3 8.4 8.6 7.2 8.3 8.9 6.6 8.6 8.1 8.6 9.6 8.5 7.3 8.6 8.4 7.4 7.4 8.8 8.2 8.9 7.8 8.4 7.6 7.9 7.9 6.5 8.8 7.2 10.5 7.0 7.6 6.4 7.8 7.5 7.6 7.0 8.9 7.3 7. © Copyright 2010 Morningstar.7 7.8 1929 7.2 7.5 1935 10.1 8.3 7.4 7.1 10.5 8.9 7.0 8.2 8.2 8.9 7.9 8.4 8.0 7.2 .4 7.7 8.0 7.1 6.9 8.5 8.7 6.8 8.5 7.4 7.5 6.7 7.4 7.5 9. Inc.5 6.5 7.6 7.9 9.0 7.5 6.5 7.6 7.3 7.0 7.3 6.7 7.0 7.7 7.6 7.6 8.7 9.1 8.6 7.1 7.2 7.2 8.1 9.3 8.7 7.8 6.0 8.8 7.7 7.8 7.6 7.0 7.8 7.6 8.4 8.8 8.3 8.

3 21.6 14.3 13.Intermediate-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.4 23.3 6.2 10.7 13.1 12.7 19.0 13.4 12.8 14.7 12.0 13.3 12.3 21.8 14.8 17.7 18.0 10.6 16.2 4.3 14.5 20.9 15.3 15.3 11.9 23.0 15.3 10.0 20.2 10.3 16.5 17.4 14.5 16.4 14.5 13.0 19.3 15.2 15.2 13.8 12.2 13.2 24.2 11.8 12.6 15.6 14.5 15.5 4.4 51.7 13.7 13.8 12.8 17.8 14.0 11.2 16.2 16.5 17.5 8.3 13.6 16.9 9.5 10.1 12.3 13.0 14.5 12.3 14.8 15.7 13.0 16.0 12.2 14.5 10.4 12.6 11.5 15.0 10.0 10.4 18.8 30.6 17.8 18.0 19.1 27.4 13.4 16.4 14.0 12.7 15.0 14.4 14.7 25.7 14.1 17.2 15.0 13.4 14.1 16.0 40.4 11.2 8.1 29.1 14.6 16. Inc.8 -3.2 6.7 17.3 13.8 14.7 10.0 14.3 18.5 12.6 22.7 13.0 16.3 10. Table A-2 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1941 -12.9 13.0 15.3 13.9 14.8 18.2 -2.6 9.4 12.9 10.4 12.0 12.6 18.5 12.5 16.6 13.5 12.5 13.0 17.2 14.0 9.3 16.5 -9.1 11.6 21.2 13.6 12.2 10.3 17.3 11.9 15.2 9.3 15.4 12.3 16.4 11.2 10.7 14.5 22.5 17.8 19.4 13.0 11.3 9.2 23.7 14.9 14.8 11.7 14.8 15.6 11.2 12.0 14.0 12.3 26.9 14.1 14.3 16.5 13.9 16.7 16.4 13.4 11.5 24.0 13.2 6.9 13.3 11.7 13.1 13.2 18.6 14.1 11.7 16.8 11.1 12.6 13.9 12.5 16.7 12.0 16.7 11.7 14.5 15.3 13.2 20.8 13.2 9.5 *Standard and Poor’s 500 index total returns minus intermediate-term government bond income returns.0 17.4 16.8 7.3 21.4 14.7 12.6 12.2 23.8 15.2 16.9 19.2 14.8 14.6 10.1 13.5 12.3 21.2 10.2 13.4 15.7 24.8 16.5 10.2 22.2 10.5 13.1 12.6 16.5 13.4 15.1 10.5 12.2 14.7 12.6 12.4 15.0 12.0 16.0 12.9 19.4 10.5 12.6 10.0 14.7 14.8 16.4 17.3 26.4 12.6 14.2 12.7 15.0 14.4 23.7 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 19.9 18.1 13.4 18.3 26.2 9.9 17.2 8.8 35.9 13. 17 .7 17.9 14.9 10.4 17.6 20.2 15.0 9.6 13.6 14.3 8.6 14.1 8.8 11.3 16.2 23.1 11.3 3.7 14.2 12.7 14.7 9.0 10.5 14.8 14.3 -0.2 21.8 16.6 16.3 10.7 13.3 3. © Copyright 2010 Morningstar.1 12.6 15.4 12.7 11. All rights reserved.9 13.0 15.6 14.5 15.4 11.5 22.2 18.9 15.7 16.1 13.2 19.8 11.5 17.4 15.4 11.4 19.5 17.5 23.1 14.1 12.9 13.0 11.9 14.0 17.3 12.7 16.0 8.3 13.6 11.8 14.7 10.4 13.5 16.5 4.9 17.5 13.1 16.

3 8.3 8.0 5.1 6.1 7.8 7.8 6.4 8.2 8.1 6.7 6.7 7.2 6.3 6.9 5.9 6.3 8.3 8.8 9.5 4.3 7.0 9.7 8.8 8.4 4.2 7.4 10.5 6.5 7.9 5.0 1949 10.7 8.7 10.4 7.3 5.4 8.0 8.9 8.5 1952 8.5 7.8 6.0 5.4 6.5 8.3 6.0 7.7 7.8 8.1 5.3 1945 10.1 7.7 7.1 7.3 8.4 8.5 8.1 9.3 8.9 8.2 7.5 9.8 7.1 6.2 7.4 6.0 7.6 6.8 7.3 6.4 5.4 7.1 8. Table A-2 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1941 10.1 8.7 6.4 8.2 8. Inc.7 8.9 7.8 6.0 6.7 8.2 7.8 5.9 7.0 9.7 5.7 7.4 6.5 8.4 8.6 8.9 6.7 8.1 7. 18 1951 9.2 7.5 7.7 8.8 7.9 8.7 8.9 7.9 7.5 9.0 8.8 5.7 8.8 9.6 6.0 8.6 7.8 6.1 9.5 7.4 7.9 5.3 7.4 7.2 8.0 7.1 7.9 8.7 7.7 10.8 8.0 8.3 7.5 7.6 6.2 9. All rights reserved.5 7.6 7.1 9.4 8.8 8.4 7.7 7.8 8.7 7.5 7.4 7.7 8.8 7.8 8.6 6.0 9.5 8.7 7.3 6.7 5.9 7.1 6.4 7.3 8.6 8.4 7.2 7.2 11.5 7.9 7.8 9.5 7.7 8.0 8.5 7.9 7.3 9.0 6.7 7.0 9.0 6.3 4.8 7.9 5.5 8.0 6.3 6.5 9.7 7.1 7.1 4.4 7.6 7.4 7.7 7.9 7.8 7.1 5.8 7.8 8.4 8.3 8.5 7.7 5.0 7.8 6.4 11.3 8.9 7.4 7.8 8.4 7.5 7.6 7.9 6.5 7.6 7.3 7.8 7.3 7.9 8.9 7.5 8.2 7.0 6.3 6.5 8.5 10.2 8.0 8.7 9.4 1942 11.4 7.7 8.6 8.6 6.1 6.7 7.3 6.3 7.4 7.8 8.8 9.3 7.9 8.1 6.5 7.3 7.6 6.4 7.1 6.Intermediate-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.7 7.3 7.1 6.2 8.1 7.2 7.7 8.5 5.5 8.6 7.1 8.4 6.1 1946 9.6 8.0 7.4 8.9 8.0 7.5 8.9 7.2 7.5 7.8 6.4 8.2 10.1 8.7 8.6 7.4 6.5 7.5 6.1 7.0 8.1 8.5 6.3 6.4 8.6 7.4 10.3 8.1 7.5 8.7 7.2 8.1 8.8 7.8 8.0 7.6 7.6 8.6 8.6 7.0 7.8 6.8 7.5 6.6 8.5 7.7 7.9 6.0 8.1 8.9 1948 10.3 7.8 6.3 4.4 6.0 7.3 7.4 8.1 7.5 5.3 7.2 8.2 10.8 7.7 8.5 7.6 7.2 1955 6.2 7.4 6.2 5.3 9.5 6.5 6.4 8.5 6.1 8.5 8.2 7.3 8.7 7.9 8.9 8.8 8.9 6.4 7.8 6.7 8.1 7.0 5.3 7.2 8.8 6.0 8.8 7.3 8.4 7.9 9.5 8.9 8.6 6.7 7.4 9.5 7.8 5.6 6.9 7.8 *Standard and Poor’s 500 index total returns minus intermediate-term government bond income returns.0 7.4 6.7 7.2 8.3 7.7 9.3 6.7 7.5 7.6 7.7 7.4 8.9 7.7 8.3 6.8 7.1 8.0 7.5 5.8 8.5 5.7 7.0 7.6 6.0 7.4 7.5 4.8 9.9 7.5 9.8 5.3 8.9 8.3 5.0 8.0 7.1 8.6 4.5 7.9 7.6 7.7 9.9 6.8 7.8 7.0 9.5 5.8 6.7 7.6 6.2 6.0 8.1 8.7 9.6 8.7 8.5 9.7 7.7 7.3 8.6 7.2 8.9 7.6 7.0 5.7 7.5 9.7 1947 10.6 7.4 8.7 7. © Copyright 2010 Morningstar.4 8.3 9.1 6.8 7.6 8.6 7.0 8.3 7.2 8.6 6.7 6.4 6.6 6.4 9.4 7.6 7.5 7.8 7.4 7.1 9.4 6.7 6.7 5.7 6.8 9.1 8.2 5.4 10.0 8.2 1953 8.0 7.9 5.6 6.7 8.6 8.1 6.4 8.2 6.9 7.2 7.8 8.5 7.3 6.3 8.9 6.9 8.1 7.5 7.9 9.0 1950 10.3 8.4 .4 6.2 6.9 7.5 3.2 4.8 7.3 7.2 8.3 8.7 10.5 8.7 8.9 8.0 7.5 7.1 7.7 1943 11.0 7.8 7.1 8.5 6.8 9.7 6.6 7.1 6.8 7.1 7.5 6.3 7.0 6.9 8.1 6.6 7.9 6.5 8.8 8.2 7.1 6.2 6.7 8.6 6.7 4.3 6.3 6.5 6.6 6.2 6.9 8.0 8.5 9.8 6.9 7.6 9.3 6.3 7.4 8.2 7.6 8.7 7.8 6.5 1944 10.4 5.5 6.6 8.4 7.1 7.8 6.6 7.2 7.3 5.1 6.5 6.4 6.9 8.5 8.2 7.0 5.4 5.7 7.6 5.3 8.6 7.9 6.4 8.0 7.3 7.8 6.1 8.8 8.5 8.6 7.5 9.9 6.3 7.3 6.0 7.3 8.2 7.9 7.7 7.0 1954 9.1 7.

4 6.2 1.7 7.6 5.3 6.3 3.8 17.8 7.6 7.3 7.8 19.9 2.1 15.2 8.5 -5.4 12.1 14.1 9.0 6.3 4.2 -1.4 6.4 24.7 6.4 8.8 13. All rights reserved.1 12.8 2.9 3.6 5.8 8.6 6.8 4.7 9.1 12.5 10.5 10.1 9.3 7.2 6.6 9.3 -3.8 12.8 -3.3 5.9 9.8 2.5 8.1 -15.2 3.5 7.8 5.1 3.7 8.6 1.4 -1.6 7.2 -9.4 -3.5 5.3 2.4 6.6 6.0 6. Inc.9 9.4 -15.3 5.1 40. 19 .4 9.0 7.1 4.9 8.8 8.0 11.6 -4.5 0.0 8.0 2.5 5.4 10.7 9.8 7.0 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 -14.3 4.6 10.2 -12.4 11.2 3.7 6.8 -4.Intermediate-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.5 23.0 11.0 19.3 6.4 6.2 5.5 5.6 *Standard and Poor’s 500 index total returns minus intermediate-term government bond income returns.3 6.9 9.3 4. Table A-2 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1956 3.5 6.8 7.5 3.5 4.1 2.5 6.4 1.4 7.4 13.8 5.7 2.2 6.6 7.6 -0.0 4. © Copyright 2010 Morningstar.9 6.8 7.0 10.5 3.

1 6.3 1959 4.9 4.1 6.6 4.6 2.8 4.1 5.8 5.3 4.1 1.2 5.7 1.2 1970 2.8 4.8 -0.5 6.1 5.Intermediate-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.3 2.8 -1.4 1.2 4.2 4.2 5.7 3.1 4.7 3.6 2.4 6.0 0.6 4.7 4.3 1.2 5.6 6.7 .3 2.8 4.1 5.8 5.4 4.5 3.8 3.4 3.2 2.3 4.3 3.7 3.8 2.3 3.5 4.3 4.4 2.3 3.6 3.4 5.6 3.2 5.4 3.6 6.7 6.4 5.2 4.6 5.7 6.4 2.4 5.4 2.8 4.0 4.3 5.7 4.8 3.3 4.0 6.4 6.8 5.3 1.7 5.5 2.4 -1.9 3.4 1.2 2.9 4.1 4.9 3.4 0.2 0.4 5.7 3.6 3.2 3.8 4.9 3.7 1.2 3.3 5.6 3.2 6.5 3.1 1.4 5.2 5.4 2.1 4.3 4.4 5.3 4.6 6.4 5.5 3.6 3.3 -0.8 3.6 3.7 5.3 4.0 2.4 6.1 1.7 5.4 2.0 2.6 2.8 5.1 3.6 1961 4.1 5.4 4.7 2.7 4.0 2.2 3.9 3.1 2.6 0.7 3.8 3.2 -0.8 5.4 0.4 1965 1.6 1968 -1.6 3.2 4.5 4.2 4.5 4.3 5.7 4.1 6.8 3.2 0.2 5.5 3.7 3.3 5.1 -0.3 4.1 1.9 3.4 5.9 4.2 4.7 1.2 2.7 2.7 4.0 1.3 4.3 2.1 6.5 1.6 2.1 4.8 4.4 4.5 4.2 0.6 4.9 3.0 7.0 2.4 4.4 4. Inc.6 4.9 4.3 5.1 2.8 3.5 3.9 6.6 3.6 4.3 2.3 4.2 5.9 6.8 4.8 3.3 4.3 4.9 4.5 4.4 4.6 3.5 6.5 6.1 5.8 5.3 5.3 2.6 3.4 3.2 2.9 4.0 4.9 4.6 1.5 6.4 3.6 4.3 3.2 4.2 5.5 3.6 5.9 0.1 4.9 3.8 3.8 -3.9 -3.2 5.0 2.7 4.7 2.8 4.2 1969 -3.2 4.0 5.8 3.3 3.6 7.1 5.0 0.3 2.0 3.2 1.2 *Standard and Poor’s 500 index total returns minus intermediate-term government bond income returns.5 0.5 1.6 3.4 5.3 5.2 4.7 5.1 3.9 5.8 0.9 5.3 5.7 5.5 5.4 3.5 1.7 3.9 4.0 2.7 4.8 4.8 4.0 1.5 5.1 3.7 1.0 2.4 4.2 1.7 4.3 1.1 1.0 3.5 3.4 4.0 5.2 3.2 4.2 4.5 -0.2 3.1 -2.1 2.9 2.5 6.7 1.9 3.3 2.4 4.3 1963 4.0 -1.9 4.2 3.4 2.2 5.6 1960 3.4 5.9 5.9 -0.3 5.8 5.9 0.2 4.8 5.2 5.9 5.1 5.6 4.5 5.6 4.7 3.6 -8.2 1.7 -2.9 2.0 4.4 5.0 0.1 4.6 5.4 -0.2 1.7 6.0 5.1 -0.9 4.5 4.6 2.1 4.7 -3.8 4.9 5.1 5.9 4.3 3.1 2.0 3.0 -3.7 4.8 3.8 4.3 4.9 5.6 5.9 5.4 5.6 3.0 5.1 0.1 1.2 2.3 5.5 3.5 3.7 1.1 5.6 5.3 4.5 5.8 0.6 3.0 3.2 4.4 -0.1 -4.9 1957 5.9 3.8 0.0 5.1 0.2 2.0 4.2 -2.9 4.1 -0.3 2.2 2.2 4.3 4.5 2.4 5.3 1.4 4.2 5.1 4.6 6.2 5.5 5.5 3.6 4.8 3.8 -0.1 3.1 4. Table A-2 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1956 5.4 -0.2 1.9 4.1 3.3 2.4 0.1 1.2 4.2 4.4 3.3 3.5 4.7 4.4 4.9 2.6 4.0 4.3 5.6 5.3 4.4 5.7 5. All rights reserved.3 6.5 3.1 2.7 4.1 1967 2. 20 1966 -0.1 6.1 6.7 5.6 5.7 1964 2.3 4.7 1.8 4.9 3.0 5.4 4.5 1.2 4.0 5.9 2.7 4.5 5.6 0.0 4.2 5.9 4.7 5.8 7.7 5.0 6.2 3.1 6.3 2.5 2.5 5.5 2.8 2.0 4.3 4.0 5.6 5.1 5.6 0.3 4.5 3.1 -6.5 3.3 2.4 4.4 5.5 4.8 -7.1 4.5 4.3 4.9 5.5 4.7 4.4 5.1 2.0 3.7 -1.2 5.3 5.5 6.6 -2.2 2.6 -1.1 5.9 4.5 2.0 4.5 4.6 4.4 4.2 4.2 5. © Copyright 2010 Morningstar.9 6.6 5.5 4.3 -1.6 4.7 -2.3 4.4 5.2 0.2 0.3 4.5 5.6 1.1 4.7 6.9 3.7 3.4 1.9 3.8 7.2 2.8 2.9 4.4 3.7 5.8 6.9 6.3 3.2 6.5 4.8 5.8 3.0 3.8 4.4 3.4 2.2 5.1 0.1 4.5 3.9 2.6 3.3 -0.4 2.6 4.6 4.5 4.9 4.8 3.2 3.8 4.2 2.7 4.9 4.4 3.3 4.0 4.7 6.2 5.5 2.1 1.5 0.8 -0.8 5.9 1958 6.2 6.9 3.4 6.2 5.5 1.3 2.7 6.9 5.8 3.4 0.0 -1.6 3.7 1962 2.6 1.8 6.4 5.

2 11.5 2.0 7.9 0.6 6.4 6.5 2.4 7.0 1.5 4.8 8.5 9.9 -3.7 5.2 -0.6 5.3 11.3 9.5 6.6 6.5 7.4 5.1 2.5 6.1 7.1 6.6 6.9 8.7 6.1 11.6 5.9 5.4 8.0 2.5 7.9 8.9 6.0 -0.9 -1.0 7.6 7.2 10.7 5.2 5.0 10.5 4.4 10.2 2.6 10.8 7.2 -0.1 2.0 7.8 5.3 8.0 8.7 7.8 4.0 4.2 6.9 7.9 3.4 1.4 6.3 7.0 21.0 7.8 7.1 -4.4 7.9 5.6 9.3 4.4 5.7 2.5 6.8 7.8 6.2 7.8 5.4 7.9 7.4 0.0 9.9 6.1 1.6 15.1 5.6 5.7 6.8 7.7 2.1 5.6 7.4 5.6 5.7 7.5 9.3 -5.6 7.8 6.3 4.6 6.4 -3.7 5.9 7.4 10.2 1.3 4.8 1.8 5.9 6.9 6.8 6.6 7.6 6.6 5.0 9.4 10.5 9.3 7.6 2.8 6.7 6.6 7.2 5.2 8.3 5.6 12.7 4.5 5.4 5.6 4.7 5.7 3.5 4.6 7.0 4.2 6.2 8.9 5.4 10.3 7.6 6.6 -33.4 7.0 9.3 10.2 9.0 -1.0 3.7 4.9 7.7 7.2 4.3 4.4 3.9 6.4 0.3 2.2 5.1 7.4 6.7 10.5 7.1 4.4 -2.5 8.2 5.5 7.5 9.8 7.9 3.0 6.2 8.2 6.6 5.3 11.8 6.1 4.0 3.1 10.5 7.3 10.0 4.0 4.2 6.2 6.6 5.0 5.1 4.4 5.3 8.7 6.3 8.6 6.1 5.4 3.9 4.6 4.7 2.4 6.1 7.5 8.1 5.6 7.3 3.7 6.2 7. 21 .5 7.8 6.5 4.0 6.3 6.5 10.4 7.4 9.1 3. Inc.5 6.2 11.7 7.1 6.3 5.6 2.2 6.2 22.9 8.5 5.9 23.4 8.6 3.1 6.4 7.2 6.3 8.6 5.8 6.4 -1.2 3.9 5.6 1.4 7.2 10.3 11.1 6.5 3.4 12.8 8.7 4.8 7.2 7.0 5.9 7.1 3.2 7.8 4.8 7.2 7.4 6.2 9.2 7.9 4.1 8.Intermediate-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.1 5.0 8.4 9.7 9.2 0.4 9.9 5.2 6.9 7.2 5.8 6.9 9.0 8.6 5.3 5.9 8.4 6.6 0.2 9.1 7.5 5.1 6.3 -0.6 4.2 8.5 4.8 4.3 6.2 3.5 6.0 -0.5 8.4 6.4 7.4 6.2 7.9 6.3 1.5 7.6 3.1 7.5 5.9 8.5 7.5 5.5 2.4 7.5 7.4 8.5 6.0 5.9 8.4 8.7 6.8 7.9 1.4 6.4 4.9 -4.2 4.0 -13.5 8.6 6. Table A-2 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1971 8.7 5.8 7.2 6.3 8.6 10.0 2.9 5.6 4.5 6.7 -1.7 6.1 10.6 4.3 0.9 9.4 5.0 0.0 7.7 6.8 8.3 5.6 6.1 6.2 6.4 12.4 6.3 -0.4 11.1 1.4 6.6 7.6 3.6 9.9 7.5 6.7 4.7 7.9 6.4 8.6 9.6 10.0 6.3 6.3 6.4 6.7 4.8 4.1 3.2 -8.9 8.4 2.8 7.0 4.5 4.8 5.3 7.9 7.5 4.8 4.3 9.7 6.4 9.4 6.7 4.2 6.5 7.4 9.0 1.9 7.7 -7.9 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 13.5 -1.8 3.1 -0.3 11.1 9.4 4.5 6.2 10.5 7.5 -8.3 6.5 *Standard and Poor’s 500 index total returns minus intermediate-term government bond income returns.7 7.0 6.8 8.5 5.8 -21.3 29.7 9.2 6.0 8.9 8.5 5.4 5.0 4.4 6.2 6.3 3.3 4.7 6. © Copyright 2010 Morningstar.8 7.0 6.5 12.7 -13.3 -27.7 9.9 8.6 7.6 5.7 2.8 7.8 7.4 9.6 4.3 7.4 1.1 6.9 4.3 5.4 -1.6 7.1 4.4 6.2 7.3 7.9 4.0 4.1 1.4 16.0 4.9 8.0 7.6 9.8 7.3 7.1 -17.7 5.1 5.9 9.4 16.6 4. All rights reserved.2 -4.8 8.8 1.8 10.2 8.5 7.9 6.8 7.8 4.0 7.0 -1.4 5.

6 20.5 8.1 9.3 13.4 -1.4 5.2 9.0 7.4 9.6 22.0 5.5 7.4 5.0 13.5 11. Table A-2 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1986 10.1 8.1 23.9 -1.6 6.4 15.1 10.3 6.8 7.2 3.6 7.7 -1.4 12.7 -19.5 7.9 4.6 6.3 22.3 5.9 1.1 3.9 7.4 7.8 8.2 2.7 7.0 8.8 6.3 3. Inc.0 4.7 8.2 6.5 13.8 -1.4 10.5 4.2 11.0 6.3 8. © Copyright 2010 Morningstar.4 4.4 2.1 5.4 8.7 1.0 10.0 -15.0 16.2 -4.9 24.7 7.0 2.4 13.5 4.7 9.7 11.2 30.0 11.8 12.3 7.0 11.3 5.6 18.4 5.0 9.9 7.0 9.3 6.5 6.5 12.2 14.1 22.2 6.8 10.5 7.8 8.3 3.7 12.8 18.0 5.0 23.Intermediate-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.8 13.4 5.5 4.7 10.7 12.0 15.4 16.3 15.7 6.2 6.9 -4.9 4.9 1.1 5.9 7.2 -5.0 1.3 7.2 6.2 7.6 8.0 6.1 5.8 6.5 0.0 7.0 5.2 -1.1 1.8 6.7 11.7 10.2 6.5 7.2 -10.3 9.5 6.5 6.7 6.1 8.8 5.1 6.9 4.1 8.7 8.7 7.0 9.6 7.8 5.3 19.3 8.4 9.4 7.3 12.9 6.5 8.1 12.2 -7.1 27.3 4.6 -2.5 7.0 12.2 8.5 7.2 8.7 7.9 4.1 0.1 24.8 5.2 22.5 3.1 9.9 8.1 2.6 6.5 5.3 -5.2 10.8 13.2 5.6 *Standard and Poor’s 500 index total returns minus intermediate-term government bond income returns.9 -3.9 5.0 4.4 12.7 14.2 7.1 9.0 0.9 7.9 7.8 7.1 15.0 7.9 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 -2.7 11.5 7.0 10.9 8.9 17.5 6.9 -11.9 16.1 6.3 9.6 7.1 6.7 3.7 0.4 6.9 5.4 11.5 7.0 14.1 8.4 -3.8 7.0 13.5 7.6 10.2 5.5 9.6 -0.0 12.5 -1.8 5.3 9.7 11. All rights reserved.2 7. 22 .3 8.7 7.0 23.8 7.1 14.2 25.8 -3.2 7.5 4.0 25.3 12.9 5.3 -15.2 15.0 5.2 12.0 2.0 12.9 6.2 9.0 10.5 -3.7 7.2 7.0 3.4 17.7 5.8 7.0 1.8 4.

9 3.2 -21.1 -19.4 9.1 3.5 11.6 25.6 -4.Intermediate-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.7 -0.4 -1.4 -6.1 4. © Copyright 2010 Morningstar. Table A-2 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 2001 -16. 23 .8 0.4 11.1 -0.8 16.1 4.0 6. All rights reserved.3 6.8 1.6 0.2 2002 2003 2004 2005 2006 2007 2008 2009 -26.9 1.8 24.5 *Standard and Poor’s 500 index total returns minus intermediate-term government bond income returns.2 -1.6 4.5 -4.1 2.5 2.8 -40.6 5.2 -0.8 0.2 -9.7 11.3 6.2 -3.6 0.0 -7.4 -2.3 1. Inc.5 7.5 -2.1 -5.

1 -7.0 11.4 14.8 9.8 8.8 7.6 9.1 13.0 13.4 12.5 9.6 13.7 13.8 15.2 22.8 14.2 5.3 5.5 -2.2 12.3 6.9 12.7 12.6 9.2 6.1 10.2 -9.5 6.4 8.2 10.9 12.8 -5.2 12.5 14.7 -0.9 14.4 10.9 9.2 11. 24 .6 14.8 11.7 12.9 6.3 11.5 11.6 9.4 -9.9 6.5 10.2 8.3 14.4 10.1 -3.6 11.0 2.0 12.4 4.6 12.8 *Standard and Poor’s 500 index total returns minus 30-day Treasury bill total returns.7 10.8 11.0 12.6 12.6 22.8 -10.8 7.3 4.3 4.1 9.4 3.9 9.5 9.8 14.8 11.2 11.3 9.7 9.7 12.0 11.8 10.5 12.0 13.5 2.8 12.4 14.1 12.0 9.5 13.3 12.4 -26.4 7.3 13.7 10.1 13.3 11.3 12.7 12.1 6.4 12.4 -5.8 3.1 1. Inc.0 9.4 13.5 14.0 13.2 -1.7 10.8 10.2 8.4 11.8 12.8 14.9 10.4 7.9 8.1 13.3 5.9 6.1 10.5 40.3 10.3 10.2 10.8 12.1 -1.6 13.5 11.1 15.9 11.6 11.3 -35.6 10.9 10.9 14.7 11.2 9.2 14.4 7.0 11.0 -0.0 11.6 11.1 5.7 13.2 10.5 10.7 12.6 14.1 9.4 13.0 14.3 -2.7 11.9 10.4 13.6 12.1 8.9 11.6 11.8 14.8 12.8 14.9 11.9 8.3 14.4 11.2 10.0 11.2 33.5 8.6 11.9 11.5 12.8 17.6 11.8 8.0 13.5 12.9 0.2 11.5 -8.5 -0.2 13.0 14.5 15.6 15.1 12.2 -20.4 -1.4 27.3 11.5 -3.7 14.4 14.7 14.3 10.4 7.1 11.3 11.1 7.9 10.7 13.7 16.1 12.6 5.3 3.9 11.5 13.7 15.0 13.1 8.2 12.7 13.3 6.6 14. Table A-3 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1926 8.Short-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.0 8.4 13.7 8.4 16.3 12.4 10.5 12.5 10.5 10.0 13.8 12.2 -28.3 19.2 13.6 11.5 9.7 11.7 7.4 9.6 14.9 11.9 13. All rights reserved.8 4.8 8.1 14.2 -1.5 8.4 10.7 10.3 19.8 8.3 12.4 8.8 12.8 14.0 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 34.0 15.2 3.8 4.5 8.7 15.2 9.7 8.5 12.9 6.8 12.0 6.3 14.5 10.0 2.2 10.6 15.4 37.9 11.6 24.4 9.2 11.7 9.4 3.6 7.1 7.4 11.2 14.2 20.0 6.7 11.4 13.5 12.6 12.9 13.3 11.7 7.3 11.9 13.6 7.5 -13.3 14.8 7.1 11.1 10.0 14.2 7.0 10.8 9.6 8.2 12.3 12.4 14.7 15.6 12.8 12.9 4.5 11.0 11.7 11.8 10.5 12.1 12.6 53.9 10.4 9.4 10.5 14.9 11.7 13.8 6.0 12.6 14.3 11.1 5.9 12.7 14.8 0.0 10.4 13.1 8.5 11.0 9.8 10.0 33.1 40.3 11.9 11.1 15.7 13.5 11.5 14.2 10.7 15.6 13.0 12.7 26.5 11.0 13.3 -23.6 11.5 10.8 4.1 -7.3 13.9 4.9 -27.0 11.4 11.0 14.1 9.4 14.3 -44.8 14.5 11.0 -6.3 11.8 13.0 6.5 12.9 5.7 12.7 6.7 12.8 14.4 7.3 11.9 12.8 6.8 14.3 11.9 9.6 10.9 8.2 10.8 9.9 10.1 10.9 13.9 5.3 10.8 13.1 8.0 8.5 9.5 14.2 2.1 9.0 12.8 4.5 13.5 9.6 17.1 12.0 -0.4 13.0 7.4 -0.2 14.1 13.5 18.3 9.2 9.5 9.7 9.6 9.9 26.8 10.5 4.4 11.2 12.1 13.1 7.4 8.7 5.4 15.8 11.2 13.7 14.0 -0.3 15.8 11.5 14.1 10.3 13.7 13.9 8.1 47.7 12.9 14.0 2.8 0.8 10.7 -0.5 11.0 3.5 6.2 9.9 11.3 10.4 11.1 13.1 8.3 10.3 4.6 5.7 10.3 6.4 6.5 12.3 11.8 7.8 6.5 11.4 11.3 13.2 13.1 11.1 12.8 11.0 14.1 12.0 9.9 1.2 13.0 13.1 12.6 12.4 10.4 9.2 12.9 8.2 12.3 8.2 11.9 11.4 13.5 10.9 12.2 9.6 10.5 3.9 10.7 8.0 10.6 12.3 8.2 9.4 7.8 11.9 11.8 10.4 -35.6 13.1 8.3 6.8 13.9 10.0 8.6 21. © Copyright 2010Morningstar.3 10.4 10.1 13.7 31.1 7.8 12.1 8.1 10.5 8.9 9.5 10.2 9.8 10.4 8.3 10.0 8.4 33.8 -27.6 -5.8 12.4 21.4 4.8 11.8 10.4 13.8 3.9 9.9 9.0 10.8 13.6 10.0 10.1 -11.6 13.4 10.2 10.7 13.3 -0.0 14.1 11.7 13.4 12.1 13.3 22.2 12.1 10.0 11.4 7.7 12.7 12.8 12.5 2.3 12.4 11.0 0.1 8.2 -10.9 9.3 14.

0 9.8 8.6 8.5 8.4 8.7 8.5 7.2 8.9 8.2 8.6 7.4 8.8 8.5 8.2 9.6 8.2 9.7 8.1 8.8 8.6 9.6 8.6 8.5 7.2 9.6 9.3 10.1 10.5 7.9 9.3 8.0 8.0 9.8 9.0 8.6 9.2 8.0 7.0 9.7 7.8 8.6 8.0 9.0 8.8 9.1 8.5 9.1 1927 10.5 8.5 8.7 9.1 9.3 7.7 10.5 9.1 9.7 9.1 .0 10.3 8.3 9.5 8.8 8.5 9.8 10.7 8.6 9.3 8.3 8.3 9.0 7.9 9.1 9.5 8.8 8.3 8.3 10.0 7.4 8.3 9.5 8.9 8.4 8.5 9.4 9.9 8.8 10.4 9.9 8.1 8.3 8.4 9.6 8.5 8.5 8.8 7.2 8.4 8.6 8.8 8.7 8.2 8.4 7.0 7.2 8.7 8.9 8.3 9.4 9.4 8.6 8.0 8.7 8.0 9.4 7.8 8.9 8.1 9.1 7.3 8.8 8.1 7.4 8.7 9.1 8.8 9.8 7.9 9.5 9.6 8.7 8.6 8.3 9.2 9.5 8.6 11.5 8.4 10. All rights reserved.6 8.6 8.3 10.0 8.2 8.2 7.9 9.7 7.3 8.6 8.6 8.5 8.4 9.7 8.3 9.7 7.5 9.4 8.8 8.9 9.0 8.7 8.5 8.0 9.2 7.0 9.4 8.0 9.1 8.8 9.3 9.6 8.6 8.6 8.4 9.6 7.7 7.0 10. 25 1934 11.4 8.3 8.6 9.1 7.6 8.9 9.5 10.5 8.2 8.7 9.0 9.2 8.2 10.8 1933 12.4 8.6 9.8 8.7 7.2 8.2 10.5 8.9 9.7 10.3 8.6 7.4 10.7 1938 11.8 8.6 7.4 1930 9.2 10.4 10.7 9.4 9.6 8.2 8.6 8.1 9.0 9.7 8.3 9.5 8.5 9.5 8.2 8.6 8.9 9.9 9.8 8.5 9.7 1931 10.1 8.8 8.1 12.1 1928 9.3 1939 10.0 10.5 8.0 9.1 8.4 8.9 8.1 10.6 9.5 7.2 9.3 8.4 8.9 8.0 9.2 10.5 7.0 8.4 7.5 8.8 9.5 9.6 8.5 8.6 8.9 9.2 9.7 8.5 8.5 9.1 8.7 8.5 9.3 9.7 8.5 7.8 8.8 8.8 9.1 9.1 9.0 8.9 8.5 9.7 8.0 8.4 10.2 9.4 9.4 9.5 9.2 9.8 9.7 8.6 8.8 8.6 8.9 8.1 9.4 9.2 8.0 9.9 9.9 8.9 10.7 9.5 10.2 8.1 8.6 9.2 9.0 10.0 10.1 9.0 8.0 10.4 8.3 8.6 8.4 8.6 10.4 9.2 9.4 8.8 7.9 8.1 8.7 8.6 8.6 9.7 9.9 7.4 8.4 8.3 8.6 8.1 9.5 7.5 7.9 8.5 8.1 8.1 9.2 8.9 9.8 9.4 8.9 10.5 8.1 8.5 8.8 11.9 8.7 8.7 9.8 1929 8.3 8.8 9.8 10.5 10.0 8.1 8.6 1936 10.9 8.0 8.5 8.9 8.2 8.6 9.8 8.4 9.0 8.2 9.0 8.6 8.5 7.9 9.9 8.5 8.9 7.1 8.9 8.1 7.9 8.9 8.5 8.1 8.9 8.6 8.5 7.0 9.5 9.3 7.4 9.4 8.6 9.8 7.0 8.0 9.9 8.4 8.9 8.3 7.4 1935 11.0 1940 10.8 8.5 9.8 8.6 8.8 10.5 9.3 8.6 8.9 9.4 8.1 9.8 7.3 9.7 8.4 7.8 8.6 9.6 8.8 8.0 11. © Copyright 2010Morningstar.8 8.7 8.8 8.5 8.4 9.4 9. Table A-3 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1926 10.4 9.8 9.9 9.6 9.9 7.7 8.9 7.5 9.6 7.8 9.9 9.3 8.2 9.7 7.8 8.2 9.3 8.9 9.9 8.2 8.8 8.5 8.8 9.9 8.6 8.5 9.4 8.4 7.9 7.8 9.9 8.0 9.3 8.9 7.7 9.4 8.1 7.2 9.5 8.6 8.5 8.7 8.8 7. Inc.6 8.1 8.5 8.3 9.2 9.0 9.3 9.4 8.4 9.3 9.6 9.0 8.6 9.0 9.3 8.5 8.5 8.4 8.6 8.3 7.8 8.1 8.2 11.6 8.4 11.6 9.3 8.6 8.8 9.8 9.0 *Standard and Poor’s 500 index total returns minus 30-day Treasury bill total returns.2 9.7 9.8 8.4 9.3 9.0 8.9 7.2 8.3 8.9 9.6 8.5 8.1 7.0 11.7 8.2 8.0 8.2 9.Short-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.3 8.6 9.6 8.4 7.3 9.0 9.2 8.2 9.8 7.7 8.3 8.4 7.6 9.8 8.3 8.7 10.3 7.3 7.1 8.1 10.5 8.1 9.1 8.1 8.9 9.3 8.1 9.4 8.6 8.6 8.0 7.7 10.7 8.0 7.3 8.8 7.2 9.3 8.7 9.9 8.7 8.2 9.6 8.8 9.2 7.9 8.5 8.4 8.5 9.2 7.6 8.5 10.0 8.3 8.9 8.5 9.4 8.2 8.3 9.2 8.6 8.6 8.1 1932 11.2 8.7 7.3 8.0 1937 9.2 8.9 8.9 8.2 7.

4 -1.4 16.5 16.5 14.4 16.6 15.6 13.1 14.3 17.9 12.5 13.3 16.6 13.5 15.8 13.1 22.1 17.6 20.4 15.4 20.9 13.9 10.1 11.8 21.5 17.4 15.1 11.4 15.3 15.8 21.1 22.9 9.1 13.7 11.0 17.5 16.1 12.2 11.5 14.2 14.5 18.7 23.6 13.0 11.2 16.5 17.3 11.7 6.6 18.0 14.3 16.7 11.3 11.6 12.6 -2.8 17.3 17.2 11.5 14.4 14.9 13.4 12.9 16.0 16.4 15.7 15.9 15.3 13.1 13.3 11.1 11.8 14.4 14.5 12.4 19.9 9.7 14.9 7.2 17.0 16.2 15.7 25.1 11.1 14.7 15.7 16.0 17.1 18.2 11.3 14.0 15.0 9.5 27.3 18.5 11.3 14.2 15.2 16.9 22.7 15.8 11.2 5.0 16.2 51.7 23.6 18.4 14.9 14.2 -8.8 9.5 12.2 12.7 20.6 13.Short-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.9 16.1 15.2 17.3 10.3 14.2 12.2 14.9 11.0 17.2 11.0 14.2 15.3 16.7 13.2 18.1 13.5 17.5 15.2 9.9 28.1 23.0 12.1 16.6 12.2 16.6 14.2 21.1 13.5 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 20.1 13.6 18.0 18.8 21.3 17.9 15.8 11.3 17.3 15.0 22.4 13.3 17.9 13.6 7.6 14.0 15.9 11.8 14.9 13.1 14.6 17.3 18.0 17.4 9.0 14.2 14.9 23.4 13.2 18.7 16.2 22.1 18.5 4.0 9.9 20.4 10.9 13.2 17.0 12.7 13.8 13.9 12.3 20.7 14.8 11.0 16.9 16.8 13.7 15.6 12.7 14.4 12.4 15.4 19.2 12.8 12.3 15.7 10.6 0.5 19.4 18.4 13. All rights reserved.7 15.4 15.7 15.4 15.7 11.8 40.8 12.4 27.9 13.8 11.5 16.1 14.5 10.7 12.2 14.3 13.8 15.5 36.5 11.4 14.7 17.5 18.3 19.5 14.9 13.8 17.9 14.6 21.7 15.5 15.3 14.5 12.0 19.3 13.2 19.9 13.3 12.9 13.6 17.8 17.1 19.6 15.2 15.6 13.1 17.7 15.9 14.5 14.8 15.5 15.3 15.0 13.9 21.1 14.3 14.9 18.5 30.7 15.8 24.6 12.3 11.2 16.4 11.4 10.7 4.9 30.1 13.2 16.8 18. 26 .6 15.0 16.1 15.8 18.9 15.6 16.5 23.6 18.4 19.3 9.1 12.1 16.8 10.1 12.7 24.5 26.3 14.0 6.5 16.3 *Standard and Poor’s 500 index total returns minus 30-day Treasury bill total returns.9 15.8 14.1 11.3 25.5 14.1 15.7 10.5 26.7 13.1 16. Table A-3 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1941 -11. Inc.9 13.2 11.7 13.3 12.7 24.5 17.8 15.2 17.5 13. © Copyright 2010Morningstar.7 9.2 18.3 13.8 14.9 9.6 17.5 12.2 13.6 18.9 14.2 4.1 13.6 13.0 23.3 15.9 17.6 22.7 13.7 10.9 19.2 17.2 14.9 17.1 12.7 12.1 13.8 15.9 4.2 17.9 11.7 14.3 14.

0 7.2 7.3 7.3 9.5 9.6 6.7 8.6 7.1 9.5 7.4 11.6 7.7 8.6 7.9 8.5 8.2 10.1 7.9 7.2 10.7 8.1 7.0 6.9 8.5 9.2 8.6 8.2 8.1 8.3 8.8 8.6 7.9 9.1 8.6 8.6 7.4 9.4 8.2 6.6 9.2 9.5 8.4 8.5 8.2 9.2 9.3 7.8 9.4 8.5 8. Table A-3 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1941 11.0 6.8 8.8 8.4 8.9 10.3 7.2 8.2 9.9 9.6 8.0 6.7 9.5 8.6 7.6 1947 10.3 8.9 6.7 8.0 7.2 8.5 8.2 7.8 9.4 6.9 10.1 8.5 7.6 7.3 8.1 8.4 6.8 6.8 7.9 7.3 8.8 7.0 1946 10.1 10.0 7.8 8.8 8.3 6.2 9.0 7.8 9.1 7.8 8.8 8.4 8.5 7.6 7.5 7.3 8.4 9.5 7.4 7.6 9.2 8.7 8.3 8.0 9.4 8.5 8.2 7.2 8.6 7.0 9.3 9.0 9.6 7.9 8.0 7.0 8.4 9.8 8.7 10.9 8.6 8.8 7.2 9.3 8.7 7.4 8.5 8.1 6.9 8.2 8.6 8.1 7.2 8.6 6.0 9.9 8.3 7.9 9.6 9.4 8.9 7.2 9.7 9.1 8.2 8.2 10.2 9.2 12.5 7.5 8.8 7.4 8.3 8.5 8.9 8.0 9.8 8.9 7.6 8.8 6.7 8.2 7.9 8.0 6.2 9.4 8.6 7.5 8.4 7.3 9.3 9.8 7.8 8.6 6.5 9.7 9.1 8.7 7.9 8.2 8.2 8.7 7.5 8.3 8.9 8.0 8.8 9.5 7.6 7.5 8.5 6.8 7.4 6.9 *Standard and Poor’s 500 index total returns minus 30-day Treasury bill total returns.6 7.3 8.2 9.1 11.9 1948 11.8 10.9 6.2 8.2 8.0 8.9 6.9 8.0 8.1 8.1 11.0 9.9 8.9 6.5 9.6 8.3 10.0 8.3 8.1 8.7 7.6 8.4 8.2 9.6 9.3 9.2 9.3 11.5 6.0 7.6 7.9 8.8 8.1 9.4 8.5 7.0 9.7 8.2 7.2 8.2 8.5 8.4 8.9 9.4 10.8 8.8 5.7 8.9 8.2 8.6 8.0 8.8 10.7 7.2 9.3 7.5 6.9 7.3 9.1 7.0 8.0 9.6 6.7 8.3 6.4 8.3 9.6 8.9 6.1 9.3 8.5 7.3 8.1 5.4 9.1 9.3 9.2 8.1 8.6 8.3 4.7 8.1 9.5 8.2 8.2 7.7 6.3 9.5 9.6 8.8 9.Short-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.9 11.4 8.5 9.5 8.0 9.6 9.9 9.2 8.6 8.3 10.6 9.7 5.8 8.3 5.4 9.4 9.9 12.3 7.4 7.2 5.3 8.8 8.1 9.0 9.4 5.6 1943 11.0 1954 9.7 8.5 10.4 11.0 9.4 7.1 8.0 9.7 9.5 7.9 8.9 7.0 7.3 9.0 8.1 8.1 8. 27 1949 11.0 8.2 9.0 9.6 7.6 6.1 7.1 9.4 8.8 9.7 8.4 8.4 7.3 8.7 10.9 8.1 7.6 6.1 7.3 7.7 9.2 8.7 8.8 9.9 7.7 9.8 7.5 8.8 7.2 7.6 8.1 8.1 8.4 7.0 1950 11.0 7.0 7.3 .2 8.9 5.8 9.1 7.2 9.3 9.0 6.7 7.9 5.7 9.7 10.1 8.7 8.9 8.8 7.5 8.8 9.9 9. Inc.2 9.6 8.9 6.6 9.5 7.1 9.4 6.5 8.1 1953 9.2 7.3 7.9 4.4 8.7 8.4 6.4 9.6 7.9 9.4 9.1 9.3 8.8 9.8 8.4 9.4 8.9 8.8 9.9 8.0 7.1 5.6 6.9 8.7 6.6 9.3 7.7 7.3 8.0 7.7 9.5 8.7 9.1 7.2 7.5 10.6 8.0 7.5 8. All rights reserved.6 6.4 8.3 7.0 7.6 8.0 7.6 8.7 7.3 7.4 6.5 8.8 10.1 8.3 1942 12.4 7.3 9.6 8.1 9.4 9.6 9.5 10.7 7.9 7.1 9.5 10.5 7.8 7.5 8.4 5.0 8.5 9.3 7.5 9.0 9.9 8.9 10.3 9.1 8.6 9.1 7.4 9.2 5.6 8.8 9.5 9.0 8.5 9.3 9.7 8.3 10.2 9.6 7.3 7.1 9.1 8.4 9.6 9.5 9.0 9.7 8.2 8.4 8.1 5.5 9.8 8.0 8.1 10.6 8.9 8.8 7.5 9.9 6.3 8.5 8.1 8.5 1944 11.2 7.2 1945 11.8 9.8 7.7 9.2 6.4 1952 9.8 1951 10.5 8.2 9.6 8.5 8.3 8.5 8.0 10.0 8.6 7.5 7.2 8.8 7.4 8.7 9.2 8.2 8.3 7.9 8.4 8.2 8.8 8.9 8.8 8.1 7.6 8.8 9.0 8.1 11.2 7. © Copyright 2010Morningstar.9 9.8 8.8 8.7 10.6 10.6 8.8 8.2 8.8 6.4 5.1 1955 7.4 11.0 8.1 7.4 8.1 9.4 9.5 8.7 8.1 8.1 9.0 9.0 7.8 8.4 8.6 8.2 9.0 9.9 8.5 7.3 7.

1 7.0 11.5 10.8 2.4 8.7 7.9 6.1 8.0 -15.8 3.3 4.0 9.6 8.5 19.4 13.2 7.6 6. All rights reserved.5 -3.5 4.8 12.4 16.3 7.7 8.2 2.9 8.4 8.2 7.9 -4. Table A-3 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1956 4.6 13.4 19.1 7.4 3.1 -1.7 5.9 2.4 9.9 10.6 8.6 4. © Copyright 2010Morningstar.3 6.8 8.7 8.0 9.1 8.8 0.4 7.1 4.5 3.Short-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.8 5.8 3.7 10.9 7.5 2.5 4.9 10.2 5.0 12.9 9. Inc.6 7.8 4.4 9.9 14.3 12.4 9.7 5.4 5.2 18.2 8.5 -2.1 9.4 10.8 10.6 -1.0 3.6 9.1 -8.8 0.7 *Standard and Poor’s 500 index total returns minus 30-day Treasury bill total returns.8 25.8 10.7 16.3 7. 28 .0 6.9 41.0 8.6 11.1 -4.6 -4.0 5.0 4.5 12.8 7.2 11.1 24.3 3.5 8.8 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 -13.9 -2.7 2.8 5.3 -14.3 12.8 10.2 8.3 8.3 13.8 6.7 6.3 7.7 -11.2 6.2 4.7 11.0 8.5 5.5 5.7 10.2 5.5 2.0 5.

6 4.5 1.2 3.7 5.8 6.1 7.2 3.9 3.2 5.7 *Standard and Poor’s 500 index total returns minus 30-day Treasury bill total returns.0 3.8 5.8 7.9 5.8 5.8 6.0 4.9 5.7 5.2 1.8 5.5 5.7 5.2 1.2 5.1 -1.4 1.3 6.5 7.4 4.6 -2.9 2.2 6.9 2.3 6. Table A-3 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1956 6.5 6.2 6.7 6.8 3.1 0.3 4.7 3.3 1.3 4.9 2.6 1.0 4.9 6.8 4.8 0.4 1965 1.3 1.8 6.5 7.1 6.0 2.9 1.6 4.0 3.9 0.8 2.4 5.6 6.5 -0.5 3.4 6.6 5.7 5.4 3.2 4.3 1.3 6.2 -6.3 6.5 5.0 4.4 0.1 6.9 2.4 5.7 -0.3 7.2 5.3 6.4 5.5 6.2 -1.1 -2.3 5.4 6.5 0.6 5.3 5.9 6.2 4.5 1.4 4.7 5.2 -1.2 1966 0.4 3.6 5.1 6.8 3.7 4.8 4.2 3.3 4.2 3.6 5.3 2.5 5.7 1.2 2.9 5.1 6.7 5.4 2.7 4.9 0.0 6.0 6.4 6.9 4.9 5.6 -0.9 6.8 6.3 6.9 6.6 7.9 6.4 6.6 5.5 0.9 2.9 4.7 6.1 3.2 3.2 5.0 4.2 3.4 3.2 5.8 5.1 6.8 4.2 6.5 2.8 5.5 4.6 1.7 5.1 1.3 0.7 7.8 5.3 5.2 5.6 3.0 1.5 1.9 3.7 5.4 6.9 2.1 5.8 2.2 5.3 4.7 6.3 6.0 6.6 3.3 6.1 6.4 5.1 7.0 4.1 3.9 5.4 7.8 5.0 3.4 -6.6 5.2 6.2 6.7 4.1 5.2 5.9 4.5 6.3 6.1 3.3 4.6 4.6 4.2 5.8 3.4 6.7 6.3 4.8 5.6 6.3 5.2 3.8 4. 29 1964 3.6 7.1 6.5 6.9 3.2 3.0 5.4 3.2 5.4 5.4 6.0 6.8 -2.0 5.5 6.6 4.3 7.1 2.9 7.7 3.9 4.7 3.2 7.1 5.3 3.6 6.2 1969 -2.7 7.0 5.6 1961 5.9 5.5 1.9 7.1 6.1 2.4 5.7 3.2 2.9 1.1 6.1 6.4 4.2 6.0 5.5 4.7 3.7 4.2 5.4 0.4 4.8 2.0 7.5 4.5 4.9 -8.0 5.7 3.4 6.0 1. All rights reserved.5 0.7 3.9 2.7 4.2 4.8 6.3 6.2 1.9 7.6 1.4 1.8 5.4 7.2 -0.1 6.6 5.1 4.8 4.8 5.0 2.9 1957 6.7 7.7 4.0 5.2 6.4 5.7 4.8 5.5 6.3 5.6 7.1 4.7 5.7 1.5 5.2 5.3 7.2 -0.8 5.1 3.2 4.9 3.5 4.5 5.0 3.8 4.8 6.2 5.6 6.6 4.3 5.4 6.5 3.7 5.6 1.9 6.1 1.0 0.3 5.6 2.8 3.7 2.9 5.2 4.1 4.4 6.3 5.3 5.9 2.5 4.5 7.6 -1.3 6.0 5.7 0.2 7.9 1958 7.7 4.1 7.3 5.2 6.5 5.0 8.3 4.8 6.1 3.3 5.2 6.3 4.1 6.8 5.7 5.7 1.6 3.1 7.4 5.9 4.0 5.3 3.1 5.1 5.3 5.3 3.3 1959 4.0 7.9 3.1 6.9 4.5 5.7 2.1 6.5 5.8 4.3 5.2 4.8 6.6 4.4 5.7 6.9 3.2 4.0 2.4 1.5 4.7 2.8 5.9 5.1 1967 3.4 4.3 3.7 2.6 8.1 4.4 5.0 5.6 6.3 5.1 5.8 6.5 2.1 5.7 5.5 7.5 4.1 5.9 5.5 4.2 4.8 5.2 5.9 5.6 3.5 6.2 4.7 6.3 4.1 3.7 6.0 6.0 5.4 6.4 5.2 5.5 6. Inc.6 4.2 4.4 0.9 6.6 2.3 2.3 4.1 7.5 1.9 1.1 -0.2 1970 3.4 5.0 0.5 4.9 5.9 1.5 0.9 4.3 1.3 4.5 3.4 5.6 8.3 5.2 6.7 7.7 5.4 5.0 3.9 8.9 3.9 5.8 1.3 5.8 5.2 5.4 5.8 6.2 6.8 4.0 3.5 4.3 5.8 3.0 5.2 5.5 7.6 1.1 4.2 6.4 4.8 3.5 3.5 5.2 3.1 6.7 0.5 2.3 6.6 5.0 6.0 6.5 7.8 1.8 5.1 5.3 6.8 -0.2 5.7 2.6 5.8 4.9 5.3 3.6 7.7 1962 3.6 2.2 6.0 5.2 4.2 3.4 5.9 5.2 1.3 1963 4.5 2.1 0.6 3.6 1968 -0.5 -0.2 4.1 7.7 5.3 4.1 4.Short-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.6 4.6 -2.2 3.6 7.7 5.8 5.3 5.2 2.6 7.2 5.9 5.8 7.1 1.4 -4.3 4.7 5.4 6.9 6.2 5.5 5.4 6.9 0.9 7.9 5.0 1.9 5.2 1.5 3.4 3.7 7.4 6.6 6.5 1.9 3.2 4.0 1.1 3.6 6.1 6.7 4.1 6.2 5.9 4.7 .0 3. © Copyright 2010Morningstar.2 2.0 7.6 1960 4.6 5.6 4.2 4.6 4.9 7.3 6.8 -1.4 2.0 6.9 4.

8 3.4 8.5 8.7 6.3 12.8 4.6 8.4 10.2 7.2 8.2 7.0 5.9 -21.5 10.1 3.8 8.8 *Standard and Poor’s 500 index total returns minus 30-day Treasury bill total returns.3 9.9 0.3 -19.8 12.6 -3.8 0.6 6.7 8.1 8. Inc.6 5.7 9.4 7.1 6.0 9.7 10.2 9.0 11.9 7.6 -28.6 9.2 8.9 9.3 9.3 11.2 14.9 6.3 9.6 -3.6 9.6 -34.3 5.0 8.0 7.8 8.6 7.3 9.3 6.1 8.4 9.4 10.2 9.2 8.0 11.2 6.4 8.5 11.6 9.7 8.4 7.3 8.5 6.9 11.2 7.2 8.0 18.4 9.6 9.8 9.6 10.1 7.7 8.5 8.0 8.7 6.4 5.2 -0.7 6.7 6.3 8.0 8.6 2.8 9.6 7.0 7.4 7. 30 .1 4.6 8.4 6.8 3.3 8.4 9.7 9.4 6.9 0.6 8.5 6.0 4.8 3.9 5.5 7.3 3.8 -12.9 10.9 14.8 5.0 10.7 9.4 11.0 7.1 6.6 10.6 10.7 4.7 0.9 12.0 2.6 6.5 6.2 10.2 -3.4 7.0 7.5 8.3 5.8 7.5 6.9 6.3 6.4 6.0 6.2 6.8 7.9 12.1 6.8 8.1 8.0 8.6 6.8 5.1 13.6 14.7 10.4 6.6 7.8 6.6 -4.7 9.6 8.1 10.0 8.1 4.0 8.4 8.9 10.6 11.0 7.4 8.8 6. © Copyright 2010Morningstar.5 5.2 3.5 9.5 9.5 18.1 11.0 9.4 6.8 13.9 4.5 7.2 7.1 9.8 7.7 8.2 7.6 8.5 6.7 12.6 5.6 7.3 6.9 7.2 -13.7 6.6 5.9 -0.3 6.1 2.5 6.7 4.1 7.1 10.4 7.2 9.7 9.1 11.0 12.2 7.5 5.5 5.8 8.9 8.3 11.9 11.1 3.4 6.9 9.0 10.3 4.3 7.8 11.7 13.3 9.6 6.3 6.5 5.4 6.6 6.0 9.0 9.8 7.6 1.6 7.7 4.8 8.4 9.0 8.4 6.0 5.3 1.3 5.5 2.9 8.4 4.5 8.3 0.4 8.9 13.0 8.3 7.2 9.2 1.3 2.6 8.1 4.1 12.3 8.8 6.4 6.5 8.3 7.0 3.6 -2.6 2.3 4.6 7.6 10.8 8.7 12.9 12.5 5.0 0.7 5.4 8.8 8.3 4.2 6.3 7.0 0.9 8.7 4.7 8.4 1.7 9.5 -3.6 3.6 4.5 7.7 11.0 6.2 11.7 7.8 7.9 8.6 3.6 8.7 7.1 8.4 10.5 1.3 0.8 6.6 5.8 6.9 7.7 8.0 9.3 7.1 5.5 7.3 3.3 8.0 9.1 11.1 2.6 4.4 6.0 10.0 6.3 5.4 10.5 8.3 -6.3 7.3 4.7 7.9 11.7 6.1 5.6 3.5 9.7 10.0 9.7 7.0 10.3 11.8 5.0 9.7 8.1 8.7 5.6 5.8 3.1 5.8 8.1 10.0 6.0 9.5 7.1 7.6 10.9 6.4 5.4 25.5 7.7 6.4 10.0 -8.6 4.2 -1.5 -0.0 12.1 4.5 8.6 4.4 10.2 8.9 7.1 -1.6 11.6 2.0 5. Table A-3 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1971 9.8 5.4 7.1 9.6 6.2 8.3 7.4 6.1 6.7 6.2 6.1 6.0 5.4 8.9 8.6 6.6 2.4 6.2 1.2 -7.2 8.0 8.5 0.6 8.6 1.4 5.2 8.8 8.0 9.8 5.4 7.0 5.2 10.6 1.0 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 15.6 1.9 6. All rights reserved.2 6.5 7.9 8.9 5.8 9.0 12.8 7.0 12.4 9.8 5.5 -0.4 9.3 -1.6 8.4 1.5 -1.7 5.9 12.6 1.2 7.0 7.7 11.1 10.6 3.Short-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.4 31.8 6.1 11.2 6.2 9.9 7.9 8.8 4.8 7.7 8.7 9.5 7.6 6.0 7.5 8.3 7.4 7.5 3.3 9.6 2.3 11.7 8.4 7.5 9.9 7.8 5.8 7.2 7.3 21.3 9.4 24.3 9.1 7.8 1.4 -1.7 9.2 2.1 6.5 7.3 9.8 7.3 5.5 1.3 7.4 11.6 7.2 9.7 11.4 7.9 11.7 11.0 7.

8 8.6 8.4 9.7 14.9 8.8 8.0 16.7 6.3 10.0 9.0 6.3 5.8 8.1 5.5 7.7 -3.0 11.1 13.2 32.1 9.4 13.2 7.Short-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.3 3.8 15.2 5.3 16.3 8.6 14.5 6.5 7.9 2.3 9.2 7.9 15.8 14.6 10.8 19.4 7.9 3.9 25.9 10.3 9.1 4.3 6.3 7.8 8.9 8.9 6.9 6.2 6.0 8.7 8.1 7.9 8.2 7.1 9.4 2.1 -10.0 -15.9 10.6 12.3 8.9 7.0 6.4 11.9 25. © Copyright 2010Morningstar.4 8.6 17.9 6.2 1.8 9.0 23.6 9.2 13.1 -0.6 9. Table A-3 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1986 12.0 6.0 11.5 8.2 6.2 14.4 9.2 13.9 8.0 28.3 14.4 5.1 7.5 12.5 12.4 9.2 10.4 14.5 17.7 5.7 18.2 7.1 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 -0.2 -6.3 7.8 17.4 -2.7 8.0 11.2 4.6 13.8 8.1 6.8 14.7 11.8 13.6 2.3 11.0 7.4 -18.3 24.6 9.1 10.4 10.6 11.6 8.5 14.3 7.5 8.6 -0.5 9.8 8.6 7.6 5.2 21.9 23.1 7.1 13.8 8.7 8.0 4.7 17.0 8.2 3.1 25.2 4.9 8.2 4.7 -4.2 12.7 8.3 8.4 6.1 0.5 -0.1 9.8 5.8 -9.2 13.4 9.1 12.4 15.6 6.5 -2.6 0.9 7.5 13.4 -2.6 8.7 -1.7 11. Inc.4 -4.9 12.2 6.2 8.8 19.5 1.3 -2.1 10.4 6.9 2.8 14.6 16.7 7.4 7.1 7.4 10.9 14.9 16.2 8.4 8.2 12.6 8.3 6.6 8.9 10.0 6.3 12.7 7.1 10.7 20.7 13.1 5.2 2.0 10.5 7.0 9.3 9.0 9.1 8.5 8.9 5.5 11.6 *Standard and Poor’s 500 index total returns minus 30-day Treasury bill total returns.8 13.4 0.0 13.4 23.9 10.9 16.1 9.3 12.1 -15.7 15.1 11.0 6.2 9.2 8.1 8.9 22.0 8.4 5. All rights reserved.8 12.7 8.1 13.5 2.3 4.8 10.7 -0.4 6.2 2.2 11.8 22.8 12.5 8.4 5.2 9.6 6.2 23.0 24.1 8.5 7. 31 .9 8.8 7.4 10.2 8.5 7.3 -2.5 6.0 3.

9 -3.0 5.4 -0.7 -3.9 6.0 1.5 0.8 -18.3 11.9 1.5 4.1 2002 2003 2004 2005 2006 2007 2008 2009 -23. All rights reserved.6 10.7 18.9 -8.5 3.7 2.6 1.9 -3.1 0.4 *Standard and Poor’s 500 index total returns minus 30-day Treasury bill total returns.1 12.1 5.6 -6.5 5.9 27.2 0.0 1.8 -38.9 5.7 13.8 7. Table A-3 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 2001 -15. © Copyright 2010Morningstar.6 -1.8 1.9 -0.7 5. 32 .0 4.7 -3.6 9.9 -0.1 26.3 4. Inc.Short-Horizon Equity Risk Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.7 -19.6 -6.2 2.

2 1.0 0.0 1.0 0.5 2.3 4.2 0.2 1.8 0.3 2.4 0.6 2.0 2.1 3.5 0.3 2.6 0.6 0.9 5.2 0.7 1.4 4.8 3.3 0.4 3.2 -0.9 3.2 4.4 1.0 5.8 1.7 -3.4 1.1 0.9 5.3 3.0 1.9 1.4 1.6 4.0 1.7 -5.6 1.6 0.0 1.5 1.9 1.0 3.5 0.2 1.7 0.7 5.8 3.0 2.2 7.3 1.8 4.7 2.8 2.1 1.2 0.5 0.7 0.1 4.1 1.9 1.1 5.2 1.5 0.7 5.7 1.8 1.3 -0.5 0.2 0.4 1.7 0.9 0.0 4.0 3.2 1.2 1.3 1.5 0. 33 .1 2.0 5.4 4.0 2.4 0.1 6.5 0.0 0.4 -0.1 0.5 7.0 1.1 3.5 2.7 3.8 0.3 0.5 -0.3 -0.5 0.6 5.1 1.2 2.6 0.8 1.2 0.7 3.7 0.2 1.2 0.5 0.0 0.4 9.3 1.1 0.3 0.1 0.4 3.4 0.4 0.0 0.2 1.1 1.3 -0.6 0.6 1.7 0.6 3.3 -0.9 2.7 2.8 1.5 3.5 0.6 0.9 -0.9 1.2 0.3 3.7 1.4 0.3 1.8 0.2 -1.4 -0.3 0.4 0.6 2.1 0.7 3.7 0.1 5.0 0.5 0.5 1.1 0.1 0.5 4.1 0.1 0.8 1. Table A-4 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1926 -8.3 0.8 0.1 3.7 3.8 1.3 0.4 1.1 -0.1 0.3 -0.5 1.7 1.4 0.6 0.1 2.0 5.4 6.1 0.1 -0.3 0.2 0.0 3.1 0.8 5.4 3.9 0.4 1.4 -0.4 0.3 0.7 0.6 2.0 -0.0 -0.2 4.9 1.2 0.3 5.4 0.0 0.5 0.6 5.8 1.6 0.9 1.3 -0.6 7.7 2.5 0.1 11.2 -0.0 1.0 2.1 0.5 1.3 1.6 1.1 -0.7 4.0 1.0 0.7 1.5 0.0 -0.4 1.1 -0.0 1.5 0.2 1.3 0.7 0.4 1.1 2.5 3.0 0.2 1.1 -0.5 1.2 1.9 0.8 -8.0 1.9 1.3 1.2 1.Mid-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.8 0.6 3.2 0.7 0.8 0.6 2.8 1.1 2.0 1.1 0.1 0.4 3.0 1.4 1.8 0.0 0.5 0.0 1.1 2.3 0.0 1.5 2.0 0.6 1.7 3.2 1.1 0.2 1.8 1.9 1.6 -0.8 1.6 1.9 1.5 4.2 1.8 3.2 2.4 -0.6 4.2 1.6 4.3 1.5 0.7 0.2 1.9 1.3 0.2 0.3 1.2 1.7 0.3 1.5 0.4 5.4 1.0 1.3 1.7 2.3 1.0 0.7 1.2 0.4 -0.0 5.8 2.1 -0.5 0.0 -6.0 0.1 0.5 1.2 0.6 2.0 1.4 -0.3 0.3 0.8 0.8 1.0 0.0 0.3 0.1 0.0 1.3 1.4 0.2 0.1 0.6 0.1 2.5 0.7 0.3 1.1 0.3 2.6 1.5 0.0 4.2 0.5 0.0 0.4 7.7 2.6 2.2 2.2 4.8 4.0 1.5 -0.9 1.6 4.9 0.6 2.5 -0.7 1.9 1.6 1.6 1.4 -0.4 2.3 0.2 0.4 0.5 0.9 4. © Copyright 2010 Morningstar.4 5.2 -0.8 1.3 0.0 0.4 1.9 2.4 2.8 1.8 3.4 0.3 6.7 4.4 0.3 0.0 0.8 0.3 -0.6 1.8 1.3 1.3 1.3 2.1 4.2 -0.8 4.5 -0.6 1.4 -0.1 2.6 3.5 4.6 1.3 0.2 1.2 -0.1 1.7 1.3 1.4 0.0 1.4 1.0 1.9 5.6 0.2 4.3 -0.1 4. All rights reserved.5 -0.1 0.4 2.6 4.3 4.8 2.6 1.8 2.4 0.9 3.0 1.2 1.3 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.2 5.9 1.7 0.0 0.6 1.5 0.0 2.8 1.7 1.3 5.5 2.7 1.4 0.7 0.2 0.3 4.1 0.0 0.0 0.4 6.8 3.7 1.5 -0.4 1.1 3.4 3.4 0.6 1.4 -0.8 1.4 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 -7.8 1.0 4.2 1.3 1.6 -0.7 1.2 1.5 2.6 1.3 -0.2 0.3 1.9 1.8 5.4 2.8 2.4 3.5 4.9 1.1 0.1 0.3 -0.8 0.2 1.6 5.9 0.2 0.4 0.9 0.9 5.9 1.5 -5.4 -0.1 4.2 1.2 0. Inc.2 1.5 0.6 0.6 1.5 1.7 -0.

4 1.4 1.7 1.5 1940 1.1 0.3 1.6 1.2 1.6 1.6 1.4 1.5 1.2 1.8 1. Table A-4 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1926 0.6 0.0 2.9 1.4 1.3 2.4 1.8 1.2 1936 0.9 1.5 1.5 1.1 1.6 1.0 0.4 1.4 0.4 1.8 0.0 2.5 0.6 1.1 2.5 1.4 1.8 1.2 1.7 0.1 2.2 1.1 1.7 1.9 1.3 1.7 0.0 2.3 2.7 1.8 1.1 1.3 1.4 1.3 1.9 2.3 1.5 1.6 1.4 1.0 0.8 1.5 1.5 1.6 1.1 1.0 1.0 2.5 1.5 1.5 1.0 1.6 0.1 1.5 1.6 0.1 0.4 1.9 2.3 2.7 1.4 1.1 1.7 1932 1.8 1.4 1.2 1.1 1.2 1.1 1.6 1.8 1.3 1.0 1.3 1.3 1.2 1.3 2.7 1.9 1.3 1.0 1.1 1.9 1.2 1.4 1.1 1.3 1.3 1.5 1.9 0.0 1.3 1.4 1.3 1.8 0.2 0.9 1.8 1.9 1.1 1.7 1.5 1.6 1.4 1.8 1.4 1.4 1.5 0.6 1.4 1.5 1.5 1.4 2.4 1.5 0.0 0.3 1.3 1.0 1.1 2.1 0.1 1.6 1.0 1.0 1.7 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.5 0.2 1.2 1.2 2.2 1.1 0.5 0.2 1.8 1.2 2.1 0.1 1.2 1.3 1.6 1.1 2.6 1.0 0.3 1.6 1.4 1.6 1.1 1.7 2.8 1.9 1.9 1.2 0.4 1.4 1.5 0.3 2.3 1.1 0.0 1.3 1.5 1.2 2.3 1.2 0.0 0.4 1.1 1.3 1.2 0.4 0.1 1.3 1.9 1.1 1.4 1.4 1.3 0.7 0.2 1.2 2.6 0.3 1.6 1.7 1.2 1.1 1.0 2.4 2.8 0.4 1.0 2.9 0.7 0.1 1.2 1.2 1.5 1.4 1.5 1.5 1.8 1.6 1.8 1.0 1.2 1.7 1.9 1.4 1.7 1.3 1.7 1.0 1.8 1.0 1.6 0.0 0.9 1.1 1.0 1.6 0.4 1.9 1.8 1.9 1.7 1933 1.8 2.6 1.7 1.6 1.7 0.3 1.2 1.6 1931 1.9 2.7 0.5 1.3 1.9 1.7 0.6 1.5 1.2 1.3 0.5 1.6 0. © Copyright 2010 Morningstar.6 1.6 1.2 1.2 2.7 1.6 1.9 1.0 1.5 0.3 1.7 1.0 1.7 0.6 1.3 0.8 1.0 2.7 1.4 2.2 1.1 1.8 0.5 1.3 1.4 1.8 1.2 1.8 1.2 1.6 1.5 1.8 0.5 1.5 0.3 1.1 1.7 1. All rights reserved.7 1.2 1.9 1.0 2.1 1.6 1.3 1.4 1937 0.3 1.4 0.5 1.9 1.8 1.8 0.2 1.6 0.6 1.8 0.9 1.4 1.6 1.4 1.3 1.6 0.2 1.8 1.6 1.7 1.3 2.0 2.2 2.5 1.1 2.9 0.3 1.3 0.7 1.7 1.8 2.7 0.6 1.0 1.5 1.6 .7 1.6 1.6 1.5 1.0 0.9 2.1 1.3 1.6 1.0 1.6 0.3 1.5 0.4 1.5 1939 1.3 1.6 1.3 1.3 0.5 1.9 1.3 1.8 1.0 1.2 0.0 1.8 1.1 1.6 1.9 1.5 1.5 1.7 0.7 1.7 2.4 0.3 1.6 0.7 0.2 1.4 1.0 0.8 1.5 1. Inc.5 0.9 1.9 1.3 1.1 1.0 1.5 1.7 1.9 1.3 1.8 2.2 1.2 1.9 1.4 1938 1.8 0.3 0.9 1.7 1.4 1.6 1.2 2.0 0.9 1.1 1.1 1.1 1.1 1.2 1.9 1.7 1.2 1.5 1.0 2.2 1.5 1.0 2.7 0.4 1. 34 1934 0.0 1.2 2.3 1.6 1.7 0.8 1.6 1.6 1.9 1.3 1.6 1.Mid-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.7 1.1 1.1 1.0 0.4 1.3 1929 1.3 1.5 0.5 1.4 1.3 1.5 1.5 1.3 -0.1 1.1 1.4 1.5 1.9 1.9 1.6 0.2 1.0 1.3 1935 0.6 1.1 1.1 1.6 1.2 2.2 2.3 1.8 1.7 0.8 1.3 1.4 1.2 0.8 1.8 1.4 0.7 1.0 0.1 1.9 1.3 1.6 1.2 1.9 1.9 1.6 1.8 1.3 1.5 1.8 0.0 1.0 1.0 0.0 1.6 1.5 1.4 1.4 1.1 1.0 1.2 1.3 1.6 1.9 1.0 1.7 1.5 1.5 1.4 1.5 1.2 1928 1.5 0.8 0.3 1.9 0.1 1.4 1.2 0.5 1.2 1.9 1.3 1.4 1930 1.1 2.2 1.2 1.6 1.4 1.8 1.2 0.4 1.0 0.0 1.1 1.3 0.3 1.7 1.7 2.9 0.5 1.3 2.4 1.9 0.2 2.7 0.0 1.1 1.3 1.3 1.1 1.9 1.1 2.2 1.2 1.1 1927 0.8 0.9 1.8 1.1 1.4 1.3 1.9 0.5 1.5 1.6 1.5 0.5 1.2 1.2 1.1 2.4 1.1 2.9 1.3 0.9 1.2 1.9 0.

1 2.4 0.8 1.3 0.7 2.6 1.6 2.0 0.6 0.7 1.Mid-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A. Inc.9 1.6 0.8 -1.2 3.2 0.3 -2.8 1.7 2.0 -0.9 3.0 1.7 1.0 0.8 1.2 -1.6 1.7 -0.4 1.7 0.9 2.6 -0.7 -1.1 0.9 0.8 0.3 -0.1 -1.8 2.1 0.6 0.4 1.2 -3.8 2.1 0.1 0.6 1.6 1.1 1.3 1.3 0.3 -0.9 3.8 4.0 0.5 -0.2 1.1 1.6 0.4 1.9 -4.0 3.3 0.7 -1.1 -0.1 0.6 1.3 -0.3 0.2 1.3 1.8 0.3 0.5 1.5 1.8 1.1 -2.7 1.6 -2.4 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.1 1.5 0.3 -0.6 -0.0 2.8 -0.3 3.5 0.1 -1.1 0.0 0.6 0.6 1. © Copyright 2010 Morningstar.6 1.2 -0.6 1.4 1.2 -0.3 -0.8 0.7 -3.1 -0.5 0.4 -0.0 0.9 3.5 0.4 1.3 1.0 -3.3 1.2 1.7 1.1 0.6 0.8 1.8 -1.9 0.8 0.7 1.6 0.7 2.6 1.7 0.9 4.5 1.1 1.0 0.1 2.4 -2. 35 .8 -0.0 2.6 0.4 0.0 1.1 1.1 3.8 0.0 1.0 -1.7 -0.2 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 5.3 0.1 3.2 5.1 1.7 0.4 1.9 0.6 1.8 1.4 0.1 0.5 4.3 1.4 0.0 1.6 -0.8 -1.9 1.0 -0.6 0.7 0.0 1.4 1.2 1.5 -0.0 2.6 1.3 1.3 1.1 0.0 0.0 1.8 -4.6 0.1 1.5 0.5 2.7 1.3 2.5 1.0 2.1 1.1 2.5 1.5 -0.4 2.1 2.7 0.4 1.2 1.9 2.4 -2.9 3.2 0.7 -0.8 2.4 -0.7 3.1 0.2 0.7 3.3 1.3 0.1 0.7 0.7 1.2 -2.0 0.1 0.4 1.6 0.0 1.2 1. All rights reserved.0 -0.2 -3.4 0.6 3.5 -0.8 1.6 -0.0 1.4 -0.8 2.1 0.5 2.1 1.5 -1.7 0.4 -1.3 1.6 0.0 1.1 2.3 0.9 1.4 3.3 -2.3 0.0 1.3 -0.1 0.2 0.1 1.0 -3.0 1.8 2.4 -0.6 -3.4 0.0 -0.1 0.3 0.6 0.6 3.2 -3.6 0.3 -1. Table A-4 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1941 7.2 2.2 0.1 0.5 1.2 2.7 0.0 1.5 1.0 0.7 -0.9 3.8 1.9 1.6 0.2 1.8 2.0 2.4 1.7 1.6 0.6 1.5 0.2 2.4 2.6 2.4 1.3 1.

1 1.1 1.5 1.3 1.0 1.5 1953 1.9 1.9 1.0 1.1 1.3 1.4 1.9 -0.4 1.3 0.7 1.9 2.2 1.1 1.Mid-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.2 1.4 0.4 0.6 0.1 1.6 1.5 1.8 1.8 0.3 1.1 1.4 1.2 2.0 1.0 1.2 1.4 1.4 1.9 1.6 1.5 0.7 0.3 0.9 1.8 0.6 1.2 0.3 1.4 2.6 2.2 1.9 1.5 1942 1.9 1.5 1.9 1.3 1.3 1.4 2.0 1.1 1.6 1.4 1.7 .6 0.9 0.3 1.8 2.6 0.5 1.3 2.0 0.1 0.7 0.9 1.7 1.5 1.8 2.9 1.1 1.0 1.6 1.1 1.5 1.5 1.5 1.1 1.0 0.6 1.5 1.4 1952 1.1 1.4 1.3 0.5 1.2 -0.4 1.4 1.4 1.2 1.6 1.5 1.1 1.6 1.5 1. Inc.1 1.0 1.6 1.5 1.7 1.2 0.4 1.3 1.9 1.6 1.6 1.9 0.6 1.2 1.5 1.8 0.4 0.9 1.7 1.6 0.8 1.2 2.8 0.7 1.5 0.6 1.9 1.1 0.0 1.2 1.9 1.4 0.1 1.5 1.7 1.8 1.0 1.0 1.3 1.5 1.6 1.4 1.2 1.7 1.0 0.7 2.1 0.5 1.1 -0.8 1.9 0.9 2.7 2.8 1.6 1.1 1.0 2.3 1.5 1.8 2.9 0.2 1.2 1.2 1.9 1.7 1954 1.2 1.6 1.4 1.8 0.6 1.6 0.9 1.3 0.0 1.8 1.3 1.4 0.1 2.2 1.3 1.2 2.9 0.5 1.1 1.4 1.6 1.4 1.4 2.8 0.3 1.2 0.5 1.1 0.8 2.2 1.9 1.2 1.0 0.8 0.3 1946 0.2 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.5 2.7 1.7 0.3 0.8 2.8 1.0 1.7 1.4 2.1 0.2 1.5 1.9 2.2 0.8 1.1 2.0 1.5 1.2 1.7 2.6 1.3 1.5 1944 1.4 1.3 2.0 1.8 0.1 1.9 1.3 1.4 1.5 1.0 2.2 1.7 2.4 0.1 1.9 0.3 1.9 1.5 1.5 1.6 1.3 -0.7 2.4 2.5 1.5 1.3 1.8 1.6 1.4 1.1 2.7 2.7 0.3 -0.4 1945 0.5 1.1 0.6 1.6 1.4 -0.8 1.9 2.4 1.9 1.3 1.5 1.9 1.2 0.6 1.6 1.1 1948 0.4 1.7 1.3 1.3 -0.2 0.7 1955 1.5 1.1 0.9 1.9 2.4 1.8 1.3 2.8 1.3 1.8 2.2 1.7 1.0 0.4 1.7 1.3 1.1 2.2 0.0 1.8 1.8 1.9 0.8 2.2 0.0 1.8 0.7 1.6 1.6 0.0 0.1 1.8 1.9 0.6 1.5 2.6 1.9 1. Table A-4 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1941 1.9 1.4 2.4 0.2 1.5 1.0 1.0 1.5 1.4 1.1 0.3 1.0 0.9 1.9 2.2 0.1 1.4 1.7 -0.5 1.7 0.1 1.2 1.3 1951 1.9 1.8 0.4 1.8 2.3 0.5 1. All rights reserved.7 1.6 1.5 1.4 0.4 1.6 0.7 2.3 0.7 1.1 1.8 0.3 1.7 0.5 1943 1.3 1.4 1.6 1.4 1.0 1.5 1.1 1.0 2.1 2.8 0.1 1.3 0.8 -0.4 1.0 1.1 1.3 2.6 0.2 0.5 1.3 1.0 0.4 -0.0 1.7 1.2 1.8 1.4 1.9 0.9 1.1 2.3 0.0 1.8 1.7 1.0 1.2 1.8 1.2 0.6 1.2 1.3 1.0 1.8 0.8 1.4 1.0 0.5 0.7 0.7 1.4 1.2 1.4 0.9 1.0 0.3 0.6 0.2 1.4 1.8 2.2 2.4 2.4 1.1 0.4 1.9 1.6 1.2 1.3 1.6 -0.1 2.1 1.9 1.8 1.0 1.4 1.7 1.5 1.3 2.1 1947 0.5 -0.1 2.9 0.7 0.5 0.2 1.6 0.2 1.4 1.3 1.0 1.3 1950 0.7 0.0 0.7 1.1 1.4 1.4 1.0 1.2 1.6 1.1 1.2 1.8 0.1 0.5 1.3 0.5 1.2 1.1 1.2 1.8 2.4 1.8 0.5 1.1 1.7 1.4 1.1 2.3 1. © Copyright 2010 Morningstar.0 1.5 1.5 0.0 0.5 1.1 1.6 1.7 1.1 0.7 1.2 2.7 1.3 1.0 2.4 0.5 1.4 1.4 1.7 1.2 0.9 1.4 1.4 1.5 1.7 2.3 -0.2 1.8 1.5 1.2 1.5 1.5 2.4 0.8 2.7 1.1 2.6 1.1 0.1 -0.6 0.1 0.6 1.0 1.1 2.3 0.0 0.7 1.7 1.1 1. 36 1949 0.8 0.8 1.6 1.4 1.5 1.9 1.6 1.3 1.2 1.1 2.2 1.1 1.7 1.5 1.4 0.9 1.1 2.7 0.7 1.0 1.7 1.8 1.6 1.9 1.2 1.7 2.2 1.6 2.9 1.2 2.8 1.2 1.5 1.0 0.6 0.2 1.2 1.0 1.7 0.6 1.3 1.3 1.1 0.5 1.1 1.1 1.9 0.1 1.7 0.2 1.7 0.

Mid-Cap Size Premia* (in percent)
2010 Ibbotson SBBI Valuation Yearbook: Appendix A, Table A-4
End
Date
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970

Start Date
1956

4.2
3.9
2.3
1.2
1.3
2.4
2.5
3.6
3.9
3.1
2.3

1957

1958

1959

1960

1961

1962

1963

1964

1965

1966

3.7
2.1
0.8
0.9
2.2
2.4
3.5
3.9
3.0
2.2

2.4
0.8
0.9
2.3
2.6
3.8
4.1
3.1
2.2

-1.0
-0.7
1.2
1.7
3.1
3.6
2.7
1.9

-1.5
0.8
1.5
3.0
3.6
2.7
1.8

0.3
1.2
3.0
3.6
2.6
1.6

1.5
3.6
4.3
3.1
2.1

5.1
5.5
3.7
2.5

8.1
5.9
4.3

7.3
5.2

4.0

*Beta and equity risk premium estimated using the Standard and Poor’s 500 index.

© Copyright 2010 Morningstar, Inc.
All rights reserved.

37

1967

1968

1969

1970

Mid-Cap Size Premia* (in percent)
2010 Ibbotson SBBI Valuation Yearbook: Appendix A, Table A-4
End
Date
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

Start Date
1956
2.5
1.7
0.9
1.3
2.0
2.5
3.0
3.1
3.5
3.2
3.5
3.4
3.4
3.1
2.9
2.7
2.5
2.6
2.3
2.0
2.2
2.4
2.5
2.3
2.1
1.9
1.6
1.0
1.2
1.3
1.4
1.6
1.8
1.8
1.9
1.8
1.8
1.8
2.0

1957
2.4
1.5
0.8
1.3
2.0
2.5
3.1
3.1
3.5
3.2
3.6
3.5
3.5
3.1
2.9
2.7
2.5
2.6
2.3
2.0
2.2
2.4
2.5
2.3
2.1
1.9
1.6
1.0
1.1
1.2
1.4
1.5
1.7
1.8
1.9
1.8
1.8
1.7
2.0

1958
2.5
1.5
0.6
1.3
2.0
2.6
3.2
3.2
3.6
3.3
3.6
3.6
3.5
3.2
2.9
2.8
2.6
2.7
2.3
2.0
2.2
2.4
2.5
2.4
2.1
1.9
1.6
1.0
1.1
1.3
1.4
1.6
1.8
1.9
1.9
1.8
1.8
1.8
2.0

1959
2.1
1.1
0.4
0.9
1.8
2.4
3.0
3.0
3.5
3.1
3.5
3.4
3.4
3.0
2.8
2.6
2.4
2.5
2.1
1.9
2.1
2.3
2.4
2.2
2.0
1.7
1.4
0.8
1.0
1.1
1.3
1.4
1.6
1.7
1.8
1.7
1.6
1.6
1.9

1960
2.1
1.0
0.2
0.8
1.7
2.4
3.0
3.1
3.6
3.2
3.6
3.5
3.4
3.0
2.8
2.6
2.4
2.5
2.1
1.8
2.0
2.2
2.4
2.2
2.0
1.7
1.4
0.7
0.9
1.0
1.2
1.4
1.6
1.7
1.8
1.7
1.6
1.6
1.8

1961
2.0
0.8
0.0
0.7
1.6
2.3
3.0
3.1
3.6
3.2
3.6
3.5
3.5
3.0
2.8
2.6
2.4
2.5
2.1
1.8
2.0
2.2
2.3
2.2
1.9
1.7
1.4
0.6
0.8
1.0
1.2
1.3
1.5
1.6
1.7
1.6
1.6
1.6
1.8

1962
2.4
1.0
0.3
0.9
1.9
2.6
3.3
3.4
3.9
3.4
3.9
3.8
3.7
3.2
3.0
2.7
2.5
2.6
2.2
1.9
2.1
2.3
2.4
2.3
2.0
1.7
1.4
0.7
0.9
1.0
1.2
1.4
1.6
1.7
1.8
1.7
1.6
1.6
1.9

1963
2.8
1.2
0.3
1.2
2.2
2.9
3.7
3.7
4.2
3.7
4.2
4.1
4.0
3.5
3.2
2.9
2.7
2.8
2.4
2.0
2.3
2.5
2.6
2.4
2.1
1.9
1.5
0.8
1.0
1.1
1.3
1.5
1.7
1.8
1.9
1.8
1.7
1.7
2.0

*Beta and equity risk premium estimated using the Standard and Poor’s 500 index.

© Copyright 2010 Morningstar, Inc.
All rights reserved.

38

1964
4.4
2.5
1.5
2.2
3.2
3.9
4.7
4.6
5.1
4.5
5.0
4.8
4.6
4.1
3.8
3.5
3.2
3.3
2.8
2.4
2.7
2.9
3.0
2.8
2.5
2.2
1.8
1.0
1.2
1.4
1.6
1.7
1.9
2.0
2.1
2.0
2.0
2.0
2.2

1965
5.2
2.9
1.9
2.5
3.6
4.3
5.1
5.0
5.5
4.8
5.3
5.1
4.9
4.3
3.9
3.6
3.4
3.4
2.9
2.5
2.8
3.0
3.1
2.9
2.6
2.2
1.9
1.1
1.3
1.4
1.6
1.8
2.0
2.1
2.2
2.1
2.0
2.0
2.2

1966
4.1
1.7
0.8
1.3
2.7
3.6
4.5
4.5
5.1
4.4
4.8
4.7
4.5
3.9
3.5
3.2
2.9
3.0
2.5
2.1
2.4
2.6
2.7
2.5
2.2
1.9
1.5
0.7
0.9
1.1
1.3
1.5
1.7
1.8
1.9
1.8
1.7
1.7
2.0

1967
3.3
0.6
-0.4
0.7
2.3
3.3
4.3
4.3
4.9
4.2
4.7
4.5
4.4
3.8
3.4
3.1
2.8
2.9
2.3
2.0
2.2
2.5
2.6
2.4
2.1
1.8
1.4
0.5
0.8
0.9
1.2
1.3
1.6
1.7
1.8
1.7
1.6
1.6
1.9

1968

1969

1970

-1.5
-2.0
-1.0
1.0
2.3
3.5
3.6
4.3
3.5
4.2
4.0
3.8
3.2
2.8
2.5
2.3
2.4
1.8
1.5
1.8
2.1
2.2
2.0
1.7
1.4
1.0
0.1
0.4
0.5
0.8
1.0
1.2
1.4
1.5
1.4
1.3
1.3
1.6

-4.0
-2.8
-0.1
1.5
2.9
3.0
3.9
3.1
3.8
3.6
3.5
2.9
2.5
2.2
1.9
2.0
1.5
1.1
1.5
1.8
1.9
1.7
1.4
1.1
0.7
-0.2
0.1
0.3
0.5
0.7
1.0
1.2
1.3
1.2
1.1
1.2
1.4

-2.8
0.4
2.2
3.6
3.7
4.6
3.7
4.4
4.2
4.0
3.3
2.9
2.6
2.3
2.4
1.8
1.4
1.8
2.1
2.2
2.0
1.7
1.3
0.9
0.0
0.3
0.5
0.7
0.9
1.2
1.4
1.5
1.4
1.3
1.3
1.6

Mid-Cap Size Premia* (in percent)
2010 Ibbotson SBBI Valuation Yearbook: Appendix A, Table A-4
End
Date
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

Start Date
1971

1.5
3.5
4.9
4.8
5.7
4.7
5.3
5.0
4.8
4.0
3.5
3.1
2.8
2.9
2.3
1.8
2.2
2.5
2.6
2.4
2.0
1.7
1.3
0.3
0.6
0.8
1.0
1.2
1.5
1.6
1.8
1.6
1.6
1.5
1.8

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

3.1
4.8
4.7
5.7
4.6
5.3
5.0
4.7
3.9
3.4
2.9
2.6
2.7
2.1
1.6
2.0
2.3
2.5
2.2
1.9
1.5
1.1
0.1
0.4
0.6
0.9
1.0
1.3
1.5
1.6
1.5
1.4
1.4
1.7

8.1
7.5
8.3
6.6
7.2
6.6
6.2
5.2
4.5
4.0
3.5
3.6
2.8
2.3
2.7
3.0
3.1
2.8
2.4
2.0
1.6
0.5
0.8
1.0
1.3
1.4
1.7
1.9
2.0
1.9
1.8
1.8
2.1

10.5
11.0
9.0
9.2
8.4
7.8
6.5
5.7
5.1
4.5
4.5
3.8
3.1
3.5
3.8
3.9
3.5
3.1
2.7
2.2
1.1
1.4
1.5
1.8
1.9
2.2
2.4
2.5
2.3
2.2
2.2
2.5

11.3
8.7
9.2
8.4
7.7
6.3
5.4
4.8
4.3
4.3
3.5
2.8
3.2
3.5
3.7
3.3
2.9
2.5
2.0
0.8
1.1
1.3
1.6
1.8
2.1
2.2
2.4
2.2
2.1
2.0
2.4

7.9
8.5
7.6
7.0
5.4
4.6
4.0
3.4
3.5
2.7
2.0
2.5
2.9
3.1
2.7
2.3
1.9
1.4
0.3
0.6
0.8
1.1
1.3
1.6
1.8
1.9
1.8
1.7
1.6
2.0

7.5
6.6
6.0
4.4
3.6
3.0
2.4
2.6
1.8
1.2
1.8
2.2
2.4
2.1
1.7
1.3
0.8
-0.4
0.0
0.3
0.5
0.8
1.2
1.3
1.5
1.4
1.3
1.2
1.6

5.3
4.8
3.2
2.4
1.9
1.5
1.8
1.0
0.3
1.0
1.5
1.8
1.5
1.1
0.7
0.3
-1.0
-0.5
-0.3
0.1
0.3
0.7
0.9
1.1
1.0
0.9
0.9
1.3

5.0
3.0
2.2
1.7
1.2
1.5
0.7
0.0
0.8
1.3
1.6
1.3
0.9
0.5
0.1
-1.2
-0.7
-0.4
-0.1
0.2
0.6
0.8
1.0
0.9
0.8
0.8
1.2

1.1
0.5
0.2
-0.3
0.3
-0.5
-1.1
-0.2
0.5
0.9
0.6
0.2
-0.1
-0.6
-1.9
-1.4
-1.0
-0.7
-0.4
0.1
0.4
0.6
0.5
0.4
0.4
0.8

1.3
0.7
0.1
0.7
-0.2
-1.0
0.0
0.7
1.1
0.8
0.4
0.0
-0.4
-1.8
-1.3
-0.9
-0.6
-0.3
0.2
0.5
0.7
0.6
0.5
0.5
0.9

-1.2
-1.6
-0.7
-1.4
-2.2
-1.0
-0.1
0.4
0.1
-0.2
-0.6
-1.0
-2.5
-1.9
-1.5
-1.1
-0.8
-0.2
0.1
0.3
0.2
0.2
0.1
0.6

-2.4
-1.1
-1.9
-2.8
-1.3
-0.3
0.3
-0.1
-0.4
-0.8
-1.2
-2.8
-2.1
-1.7
-1.2
-0.9
-0.3
0.0
0.3
0.1
0.1
0.0
0.5

-2.1
-2.9
-3.6
-1.9
-0.7
-0.1
-0.4
-0.7
-1.1
-1.6
-3.2
-2.5
-2.0
-1.5
-1.1
-0.5
-0.2
0.1
0.0
0.0
-0.1
0.4

-1.8
-3.0
-1.1
0.2
0.8
0.4
-0.1
-0.6
-1.0
-2.8
-2.1
-1.6
-1.1
-0.8
-0.1
0.2
0.5
0.4
0.3
0.2
0.8

*Beta and equity risk premium estimated using the Standard and Poor’s 500 index.

© Copyright 2010 Morningstar, Inc.
All rights reserved.

39

0 0.0 0.1 -2.4 0.6 -1.6 2.3 0.6 0.7 0.5 2.1 -2.3 1.9 1.2 -1.9 1.9 0.2 -0.8 0.4 -0.0 0.8 -1.5 -2.7 -1.1 -0.2 -0.8 1.1 -0.5 -0.9 -3.0 0.9 -4.4 6.7 2. © Copyright 2010 Morningstar.4 0.4 -3.3 1.6 0. All rights reserved.6 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.3 1.9 -2.1 1.4 0.3 7.5 -0.4 0.3 -3.7 0.4 0.1 0.1 0.4 1.6 1.9 -0.9 1.7 4.4 -1.0 1.7 -3.4 0.6 0.5 0.6 1.4 0.4 1.0 -4.6 0.9 4.Mid-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.6 7.5 0.2 1.5 1.6 -1.3 -3.5 0.5 1.1 -0.1 -2.4 1.2 -2.8 0.3 -6.3 0.9 0.6 7.2 -0.9 1.1 0.2 0.4 1.6 1. Inc.6 -1.2 5.4 5.5 -4.3 0.1 -0. 40 .8 0.5 0.5 -1.5 3.1 -1.1 -0.6 -4.7 0.9 5.4 3.2 1.8 -0.3 -0.1 -0.3 1.4 -3.8 -6.2 7.9 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 -0.3 1.0 0.8 0.6 1.2 -6.9 -1.6 -1.8 0.2 -2.5 1.3 -1.7 1.0 0.1 0.3 0.2 -0.8 1.3 -2.0 0.6 0.1 -9.4 0.4 1.0 0.3 -0.8 -2. Table A-4 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1986 -3.3 0.3 0.3 1.4 -0.5 0.7 0.2 5.9 1.5 -1.1 -1.5 0.7 2.4 1.5 -2.0 -2.9 0.6 0.2 -4.4 3.6 0.9 0.5 -0.3 0.8 -0.8 0.9 -3.0 2.8 1.4 0.9 -1.1 0.2 5.2 2.0 3.7 0.1 0.2 1.0 0.3 -0.9 0.7 -2.6 0.6 0.4 2.4 2.3 0.0 -2.9 7.3 0.7 1.3 -1.5 -1.4 0.0 -0.

0 4. Inc.9 3.8 3. All rights reserved.4 4.4 4.3 6. Table A-4 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 2001 8.Mid-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.3 5. 41 .8 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.8 4.3 5.3 2. © Copyright 2010 Morningstar.2 3.4 6.0 2002 2003 2004 2005 5.3 5.

2 2.3 2.9 2.0 8.3 1.4 3.3 7.3 3.5 2.8 4. Inc.0 10.7 5.5 1.4 3.7 2.6 3.7 3.1 3.7 2.6 1.0 4.3 3.2 -1.1 3.7 1.3 3.5 4.2 0.7 5.1 8.1 0.4 2.2 1.3 8.3 9.5 2.6 4.2 0.5 9.2 0.8 6.2 9.6 6.7 4.6 6.5 3.6 10.2 4.6 0.6 0.7 1.0 1.9 7.5 2.8 0.2 3.0 4.9 5.4 8.9 1.1 4.1 0.8 2.1 3.9 1.2 1.6 2.2 2.0 3.8 5.7 2.7 10.3 1.5 1.0 0.5 10.3 3.5 0.9 5.Low-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.9 7.4 2.0 0.7 -2.8 2.4 2.5 4.5 7.6 4.0 6.1 2.2 2.0 0.0 13.0 3.5 7.2 3.2 3.2 1.5 3.0 2.1 2.8 0.3 4.1 4.2 0.4 3.6 7.7 4.2 0.5 2.9 2.0 0.8 1.9 1.0 -14.8 1.6 6.2 4.5 0.6 2.3 0.4 0.7 1.0 0.2 7.3 10.5 11.8 2.2 2.0 0.4 2.0 12.5 3.1 5.2 0.8 1.4 1.8 3.5 0.0 1.3 1.1 -0.9 12.6 3.3 6.4 1.1 5.8 1.1 0.4 9.0 6.2 1. All rights reserved.3 0.0 2.1 2.0 7.5 1.8 8.4 5.5 2.5 0.7 2.1 3.1 0.9 0.8 1.1 2.2 2.2 1.5 9.3 1.2 1.0 17.3 4.0 4.3 0.6 0.4 4.6 0.1 2.1 7.0 2.8 3.9 2.1 2.6 10.7 3.2 0.7 0.4 3.6 2.2 6.6 8.3 9.8 0.5 3.7 3.9 4.9 2.3 2.4 0.1 1. 42 .9 8.4 7.1 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 -14.0 8.4 0.1 1.4 0.9 0.0 7.2 -0.8 2.3 2.4 1.1 1.0 2.8 2.4 3.9 5.5 5.2 0.6 3.4 2.1 1.6 2.6 1.1 0.8 0.8 2.8 0.4 3.6 5.0 2.2 -10.9 2.0 10.3 1.5 7.0 1.5 7.1 3.4 1.0 4.3 6.9 0.2 7.2 10.1 9.9 9.7 4.3 1.5 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.0 3.5 0.4 3.5 1.2 3.8 0.4 6.6 1.0 0.8 1.5 2.7 0.1 1.2 3.1 2.3 6.3 0.7 2.2 8.1 0.2 0.7 1.9 -0.9 2.3 11.4 9.6 0.2 2.1 3.4 13.4 2.2 3.4 5.9 5.7 3.0 1.6 1.1 13.3 3.7 6.0 5.3 8.0 2.7 6. © Copyright 2010 Morningstar.1 2.4 1.6 1.3 2.9 2.5 0.6 5.1 2.9 2.0 1.2 0.5 5.9 2.1 -0.7 0.2 1.8 5.5 2.9 1.5 1.5 0.9 1.8 1.2 1.4 9.8 9.9 2.3 5.7 8.5 1.5 3.0 2.0 6.0 0.8 11.9 5.9 2.8 2.3 1.6 8.5 0.3 10.6 4.5 9.4 3.3 0.6 4.3 10.5 1.5 1.2 1.0 15.3 2.4 0.3 5.0 0.0 2.3 1.0 1.8 2.9 1.3 2.1 4.0 9.4 -9.1 1.0 2.5 2.2 1.4 1.2 3.8 6.5 2.6 2.0 2.4 3.2 0.3 3.9 2.9 2.5 -10.6 2.5 0.5 3.8 2.1 10.3 3.6 0.0 9.4 17.8 6.8 9.8 1.2 1.6 4.2 2.3 0.2 1.9 6.6 6.9 3.0 1.8 4.0 1.6 0.5 0.6 3.2 2.8 3.7 1.4 3.4 2.1 -0.0 3.2 16. Table A-5 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1926 -16.3 1.0 11.2 10.9 1.7 7.0 2.8 0.5 1.2 10.3 7.2 9.0 4.4 0.2 10.2 -0.5 9.7 2.8 10.8 1.5 1.7 11.3 1.9 3.9 2.9 0.2 1.8 7.2 0.2 0.5 2.9 3.0 3.1 4.7 0.0 0.1 2.4 0.1 2.6 0.3 0.6 6.6 4.7 3.4 1.2 3.8 6.1 9.9 0.8 1.6 4.2 9.5 1.5 4.4 2.6 4.3 1.7 0.9 3.0 5.2 2.5 5.7 1.3 8.3 0.0 0.8 1.4 2.2 1.5 2.4 2.1 2.3 2.2 1.3 10.5 1.4 5.4 12.3 8.1 13.7 2.2 2.8 3.6 1.4 3.8 2.9 0.5 0.5 6.8 3.3 1.6 4.1 7.2 10.9 5.4 0.5 10.8 1.0 7.

0 3.4 2.4 2.0 2.6 3.3 2.0 2.7 1.1 2.0 0.8 2.1 2.9 2.8 2.5 3.4 2.4 2.3 2.1 3.2 3.2 2.2 3.0 1.5 2.5 1.3 3.8 1.8 2.7 2.2 1.8 2.8 1.4 2.7 2.4 2.3 1.5 1940 2.9 1927 1.2 2.5 4.4 1.1 3.6 3.1 2.3 2.7 3.3 2.8 2.2 2.3 1937 1.8 2.2 3.6 3.6 1.1 3.6 2.0 2.8 4.9 1.4 4.9 2.1 2.7 4.8 2.4 1939 2.0 2.7 2.7 3.2 1.5 2.9 3.0 1928 1.1 2.0 1.9 2.2 2.4 2.3 2.1 3.4 4.6 1.3 2.4 2.7 1.9 1.7 2.9 2.5 1.8 4.9 2.5 3.4 2.9 3.4 3.0 2.9 2.7 2.5 2.2 2.6 2.4 3.7 2.3 1.4 2.5 3.3 1.4 2.6 2.7 3.5 1.9 2.1 1.5 2.3 1.1 2.8 2.9 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.1 0.1 0.2 2.9 1.9 3.1 3.3 3.1 4.3 1.2 2.5 2.9 3.4 0.8 2.2 4.0 2.7 1.2 3.1 1.2 3.5 2.3 3.2 2.5 2.0 2.0 2.5 2.3 2.6 1.6 2.4 2.4 2.9 4.2 4.6 2.8 1.1 1.6 3.8 2.3 2.3 3.3 2.0 1.0 3.7 3.1 2.2 3.1 2.0 1.2 2.4 2.1 3.2 3.3 2.1 2.9 2.1 1.5 3.8 2.5 2.9 3.7 2.6 1.9 2.0 3.0 1.9 3.0 4.1 2.9 2.5 2.2 3.1 2.9 2.6 2.5 1.8 1.2 2.9 3.1 3.5 1.4 3.6 2.8 3.7 2. All rights reserved.7 2. © Copyright 2010 Morningstar.3 1.0 3.1 2.8 4.2 2.3 3.8 2.1 2.0 2.5 2.2 2.4 2.0 3.0 3.4 3.0 2.6 1.7 2.3 2.2 4.6 2.0 2.4 2.7 2.9 1.4 2.7 2.0 2.8 2.5 1.1 2.5 2.6 1.0 3.3 3.6 2.2 2.1 2.1 3.7 2.9 2.1 2.6 2.1 2.8 2.9 1933 2.1 4.7 2.5 2.5 2.2 3.7 3.9 2.3 2.4 1.8 2.1 2.4 0.9 2.7 1.4 0.3 2.2 2.2 2.2 4.8 1.9 2.3 2.2 3.1 2.3 2.1 2.6 2.3 3.7 3.3 2.5 2.9 1.5 1935 1.0 4.7 2.7 2.1 1.4 3.2 2.1 3.4 2.7 2.1 2.1 3.6 2.8 2.6 3.0 1.0 2.9 2.2 1.0 1.0 4.9 3.5 1.7 2.2 3.1 2.0 2.3 1936 1.8 2.7 1.6 2.7 2.8 3.9 1.3 2.0 1.3 2.6 2.9 3.0 2.9 1.0 1.3 3.0 1.7 2.4 1.7 3.4 2.2 2.7 3.6 2.1 2.7 2.3 2.0 2.1 2.8 3.6 2.4 2.6 1.2 2.9 1.2 2.0 1.3 2.0 2.1 2.8 2.9 1.6 1.3 3.2 2.9 3.2 3.1 2.3 3.7 2.4 1.2 2.3 2.3 3.3 3.9 3.6 2.0 2.1 2.5 1930 3.4 2.5 3.3 2.5 2.0 3.9 3.6 3.0 1932 3.4 2.4 2.7 2.2 4.8 1.2 2.5 3.6 1.8 2.1 2.5 1.5 2.0 1.5 1.7 1.6 2.0 2.8 2. Inc.1 1.8 3.7 3.9 1.3 3.1 2.7 0.0 2.1 2.0 1.5 2.9 2.8 2.3 1.5 2.3 3.9 2.6 1.4 2.7 1.5 2.1 1.4 2.4 1.4 3.7 2.2 2.2 2.2 1938 1.6 3.1 3.2 3.6 2.1 3.2 2.7 1.6 2.4 1.5 2.6 2.4 2.4 4.5 1.9 1.0 2.4 2.4 4.3 3.8 1.9 2.5 3.5 2.2 3.7 1.7 1.4 2.6 1.1 1.0 2.7 2.1 3.3 2.8 2.0 1.6 2.1 1.4 2.5 2.6 2.0 2.8 1.9 2.6 2.2 2.4 1.8 2.6 2.1 2.4 1.2 1.6 2.5 2.1 2.4 3.4 2.7 1.9 2.7 1.4 0.7 1.1 1.3 2.9 1.4 2.5 2.8 1931 3.5 3.7 2.9 1.8 3.0 1.7 1.9 2. 43 1934 1.1 2.0 3.0 3.4 3.Low-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.1 2.4 2.9 1.1 2.0 2.1 3.9 2.6 2.9 2.4 2.0 3.3 2.2 0.5 3.8 2.5 2.1 0.4 1.8 3. Table A-5 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1926 1.9 1.3 2.3 2.6 2.2 0.6 2.2 1929 2.0 2.3 3.5 3.5 3.4 3.2 4.5 1.9 2.2 2.9 2.1 2.4 3.2 2.0 3.5 2.9 2.2 4.6 2.8 2.2 3.3 2.3 4.1 2.5 1.5 2.1 2.2 3.8 1.6 2.6 1.8 3.6 3.8 3.2 3.4 2.7 2.4 0.8 3.9 2.4 2.3 2.3 1.2 1.3 2.2 2.2 1.3 4.3 3.8 2.6 3.2 1.2 4.6 .2 3.8 2.7 1.3 2.5 1.

3 3.1 1.6 1.0 1.8 -0.3 0.6 0.3 0.9 1.3 -0.9 0.1 1.3 1. All rights reserved.5 -2.5 4.6 -0.1 0.7 1.9 3.1 2.1 2.2 2.9 0.2 2.7 -6.6 3.0 -4.4 3.1 -0.5 4. © Copyright 2010 Morningstar.5 2.8 2.6 -0.3 0.0 0.0 1.8 -1.5 -1.9 0.2 2.1 -0.0 3.2 6.3 1.3 2.3 1.2 0.1 1.2 1.4 1.8 1.4 2.4 2.8 2.5 1.1 0.8 3.4 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 12.7 -1.3 -0.2 -3.4 -0.7 -3.3 1.9 2.5 4.4 2.5 1.1 0.5 -0.7 2.6 -3.4 2.8 2.4 1.3 0.6 2.4 1.1 -5.1 2.8 1.3 -0.9 2.1 -0.1 0.0 2.2 0.2 2.4 2.0 2.8 2.2 5.1 3.8 0.8 1.9 3.8 2.0 3.7 0.7 5.4 -0.7 4.3 -1.0 -0.0 -1.2 0.3 -0.4 4.8 2.4 8.3 -2.9 0.9 3.0 -0.5 -1.9 -1.4 1.3 1.3 6.2 6.6 2.1 -2.5 2.4 1.4 3.3 1.6 -0.3 3.1 1.1 2.3 -2.3 1.5 -5.9 2.8 0.3 2.3 2.8 -0.6 5.1 0.5 8.0 -0.2 4.6 4.2 -0.6 2.0 -2.3 -0.4 3.5 -1.5 0.6 2.2 -4.6 0.2 3.2 2.1 2.3 8.1 -3.2 3.3 1.9 2.1 1.8 -2. Inc.1 -2.7 0.3 1.8 2. 44 .2 0.2 3.9 1.8 1.8 0.7 2.7 -0.7 2.2 1.1 -1.8 3.6 5.3 0.5 1.8 2.7 3.6 0.8 0.5 -0.4 -1.4 -1.1 1.2 1.3 1.1 11.5 4.4 -0.6 2.8 2.3 -4.5 -2.8 -0.9 2.4 4.4 3.1 -0.6 -0.6 1.5 6.5 -0.3 2.8 2.0 2. Table A-5 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1941 14.2 0.4 1.2 4.5 1.2 1.0 -2.9 -1.8 1.3 1.4 2.7 0.3 -0.5 1.5 1.2 1.5 6.5 0.3 -0.9 3.7 0.1 1.6 2.8 2.4 2.4 1.0 -5.9 -0.6 4.8 -4.7 2.1 -0.1 2.2 -2.4 4.0 4.3 -0.4 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.2 1.2 2.0 -1.2 -5.1 2.6 -1.2 -3.0 1.3 -1.6 -0.0 1.4 2.2 0.2 2.5 2.8 0.5 2.2 0.4 -0.8 -1.4 5.2 1.3 0.Low-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.6 0.1 -5.9 3.1 0.4 1.6 5.8 1.1 3.9 -0.4 0.4 -0.9 -6.9 2.3 0.

0 1.9 2.2 3.9 1.8 0.2 1.2 2.6 2.2 2.7 2.7 1.4 2.9 2.6 1955 2.0 1.9 3.0 1.6 2.6 3.7 4.1 3.6 2.9 1.9 2.4 3.6 1.8 -0.2 0.3 4.9 3.3 3.4 1.0 2.9 1.4 2.3 2.5 0.4 3.4 0.0 2.5 4.1 2.4 3.5 3.9 2.8 3.5 2.3 2.8 2.9 2.7 2.2 2.4 2.9 1.9 1.0 -0.9 1.4 2. 45 1949 1. All rights reserved.7 2.5 2.5 2.2 3.2 4.1 2.3 -1.9 2.4 2.3 2.3 0.6 1.6 2.7 0.2 2.9 1.4 2.1 3. © Copyright 2010 Morningstar.2 1.2 2.7 0.1 1.3 -0.3 2.1 1.3 2.0 2.2 3.4 1.8 3.7 0.9 2.6 1.1 1.8 1.9 3.8 3.5 2.7 1.6 1.9 3.3 3.1 0.7 1.0 2.4 0.0 4.7 1.7 1.5 2.4 1.8 3.1 2.5 1.9 1.4 1.2 1.3 4.8 1.9 2.2 2.8 2.8 2.7 4.7 1.6 1.3 1.9 2.6 1.7 1.5 4.8 2.5 1.3 0.6 2.3 2.2 2.8 1.6 3.9 2.9 2.6 2.8 1.8 2.3 1.9 2.1 1.9 1946 0.0 1.4 2.5 2.2 1.3 3.3 2.8 3.9 1.5 2.8 1.1 3.9 1.2 2.6 2.9 1.7 1.2 0.8 2.1 1951 1.4 1.6 4.2 0.3 2.9 2.8 1.9 -0.4 1.8 2.7 -0.7 2.6 2.4 3.3 4.0 1.3 2.0 2.9 4.3 1.1 4.7 2.2 3.8 1.9 1.4 2.1 1.1 1.6 1947 0.0 1.8 2.2 1.4 -0.4 4.7 1.8 1. Inc.1 1.5 4.3 2.8 3.3 3.2 1.1 2.4 2.5 2.4 3.4 2.7 2.3 1.0 1950 1.7 1.8 1.6 1942 2.8 -0.2 3.1 2.3 2.4 3.0 3.5 2.6 1.8 2.6 1.1 2.3 2.4 1.2 2.4 2.6 2.2 2.2 2.8 2.8 3.2 1.9 2.9 1.3 2.4 1.9 1.7 3.0 1.8 3.4 1.2 2.7 2.7 2.1 3.9 3.1 1.5 1.7 2.6 2.9 1.7 1.3 1.1 2.1 2.8 2.7 1.1 0.7 0.6 2.9 2.5 3.1 1.5 1954 2.5 1.9 1.6 2.6 2.0 2.9 1.0 2.6 1.5 -0.0 1.2 2.9 1.1 2.4 2.9 3.6 1.7 0.6 3.6 1.9 2.5 1.2 2.2 0.3 1.4 1.6 1.2 2.1 2.3 4.2 1.5 0.Low-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.6 2.1 3.4 2.2 2.5 1.7 4.9 2.5 1944 1.1 1.6 2.8 1.3 1.4 -0.0 3.7 2.1 0.6 1.3 2.3 3.4 1.5 1.8 3.9 2.0 -0.8 2.2 1.9 1.3 2.2 2.7 2.4 3.3 3.6 2.2 2.0 1.8 2.1 0.3 2.5 2.5 1.0 1.5 3.6 1.6 2.7 2.9 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.8 3.7 4.7 2.3 2.7 2.9 1.6 2.2 1945 0.6 1.3 1.7 1.6 1.8 3.2 2.9 1.4 2.8 1.5 3.4 4.3 1.6 2.8 1.5 1.2 2.3 3.4 2.4 3.0 2.2 -0.5 1.9 3.0 2.6 1.7 2.5 2.5 3.3 1953 2.2 3.7 2.7 2.5 -1.8 1.4 1.4 1.9 2.5 3.9 -0.7 -0.6 1.1 1.3 2.5 0.2 2.9 1.9 3.5 1.1 2.2 1.0 1.8 2.1 1952 1.6 1.3 0.8 2.1 0.0 0.4 -0.4 2.5 1.7 1.8 -0.1 2.7 2.1 2.1 1.3 2.7 3.7 3.9 3.6 2.6 1.4 1.5 3.1 -1.7 3.9 2.8 2.1 1.0 3.3 1.7 2.4 0.7 2.2 3.7 2.2 2.8 1.6 0.3 2.5 2.3 3. Table A-5 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1941 2.1 2.9 2.0 2.8 1.7 2.2 2.5 3.1 0.5 1.3 2.2 1.5 2.5 0.2 1.5 2.3 3.0 2.5 1.1 2.7 2.0 3.1 2.8 0.7 1.6 1943 2.7 3.9 2.3 2.6 1.9 2.1 2.6 2.8 2.8 2.0 3.6 3.8 2.2 2.6 2.3 1.1 2.2 2.0 1.4 1.4 1.9 1.0 2.5 2.3 2.6 2.9 2.9 3.6 0.1 1.1 2.8 1.6 2.1 3.3 1.0 2.6 1.4 3.1 0.4 3.3 0.5 2.1 1.5 1.5 2.1 2.8 2.0 1.4 0.5 1.8 1.4 2.4 2.3 2.9 1.4 2.5 1.6 2.3 2.7 2.2 2.1 0.9 -0.4 2.4 3.5 2.5 2.7 3.6 .4 2.5 3.5 2.5 3.2 1.5 1.1 0.6 2.6 2.6 3.3 2.7 2.0 2.4 0.2 1.4 1.1 2.7 1948 0.2 2.3 1.1 0.5 2.5 -0.6 2.2 2.9 2.1 1.5 1.4 0.5 1.5 2.4 3.1 1.7 1.6 2.6 2.1 1.3 2.0 2.6 0.0 1.2 1.6 2.3 2.

8 3.2 4.1 2.7 7.1 3.5 0.2 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 2.0 10. Table A-5 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1956 3.6 3.0 5.8 3.7 4.4 3.5 6.6 3.Low-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.2 5.2 -0.1 9.0 11.6 14.4 7.3 6.8 4.9 7.6 5.8 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.2 6.2 7.1 7.9 7. © Copyright 2010 Morningstar.5 0.4 15.5 3. 46 1967 1968 1969 1970 .9 5.3 2.5 2.4 0.1 4. All rights reserved.1 1.0 1.8 5.8 0.7 9.6 4.3 6.6 1.1 5.3 2.1 6.5 -2.7 5.0 0.5 10.7 -0.4 5.2 1.4 1.4 0.0 2.3 1.1 0. Inc.2 -3.2 -2.3 2.6 2.3 6.

5 4.6 2.3 5.6 0.1 0.0 3.5 4.1 0.6 3.4 0.8 5.1 3.6 2.6 -3.1 6.3 7.3 3.9 2.8 2.4 1.0 4.8 2.1 4.2 4.2 6.9 4.1 2.3 2.2 2.3 1.5 0.9 4.8 1.8 1.8 2.0 2.6 2.3 2.9 2.6 3.1 -7.1 2.6 2.7 4.6 1.0 6.2 3.3 -3.9 3.8 2.5 1.3 3.9 3.9 2.8 5.1 5.0 3.2 3.4 2.8 3.7 2.2 2.0 5.7 3.8 5.6 2.7 3.3 5.5 8.9 1.5 2.9 1957 3.3 3.0 6.8 1.9 2.3 0.2 3.6 1.3 4.8 8.9 1960 3.9 2.9 2.8 3.1 3.5 4.4 2.0 3.7 6.7 0.1 0.7 2.4 4.8 3.3 4.6 1.4 2.3 5.5 2.8 4.2 3.0 4.8 1.3 2.8 3.7 3.0 1.4 3.6 5.0 1959 3.5 1.0 2.1 3.3 3.5 3.9 3.4 3.1 3.6 6.7 4.5 1.8 5. 47 1964 7.9 3.8 4.8 4.9 3.9 7.9 5.5 1.9 1962 4.5 3.1 2.0 2.9 3.8 1961 3.9 3.5 5.2 4.1 8.0 7.2 5. Table A-5 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1956 3.6 1.0 4.1 2.2 2.4 3.0 3.0 5.8 6.5 5.9 5.1 2.5 3.4 5.4 3.8 4.6 2.9 2.3 4.5 3.0 2.1 6.3 1.6 8.4 2.9 2.7 4.4 0.6 1.3 1.6 4.2 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.3 2.6 2.1 1968 1969 1970 -3.9 1.0 4.2 3.7 2.1 3.1 5.6 5.9 2.8 3.7 7.0 4.7 1.6 2.2 2.8 4.4 2.6 3.9 4.9 4.8 2.4 3.6 0. © Copyright 2010 Morningstar.3 5.1 3.5 4.8 2.3 2.5 3.7 1.7 2.8 2.5 2.1 3.0 0.9 7.3 2.0 2.9 -6.6 2.0 4.0 4.5 3.2 3.5 2.4 3.6 1.7 2.7 2.1 2.9 3.1 2.3 3.9 2.7 3.1 2.7 3.7 3.3 5.7 5.7 3.4 3.8 1.2 6.3 6.1 4.3 2.5 3.3 6.8 2.7 5.4 3.8 8.5 3.3 3.5 1.9 4.4 4.1 6.1 3.7 5.5 1.4 4.7 1.8 3.3 5.8 2.8 2.2 4.3 2.4 1.5 2.5 4.2 2.7 4.3 2.1 3.8 1.6 2.9 1.3 -9.4 1965 8.7 1.6 2.4 3.7 5.5 3.7 3.3 5.3 4.6 7.2 4.5 5.3 2.6 3. All rights reserved.3 . Inc.5 3.7 3.9 3.5 2.8 3.6 2.4 2.2 2.1 6.8 5.9 2.4 1.8 4.4 5.9 2.4 1.1 2.5 6.2 7.3 2.9 3.3 3.2 3.5 5.2 2.8 1.0 6.2 4.8 7.9 3.8 -2.9 -0.4 3.2 2.2 1.3 2.9 3.6 4.3 5.1 3.1 3.7 3.6 1966 7.3 2.7 0.4 1.2 7.8 2.2 4.6 -4.8 7.2 5.4 3.0 3.5 6.8 3.4 3.1 6.2 -0.8 2.6 4.7 3.5 2.8 3.7 5.8 2.9 2.5 -0.7 2.8 2.3 3.6 1.6 6.5 4.0 1963 5.2 7.8 5.7 6.4 4.6 1.8 2.3 3.9 2.6 3.9 3.8 5.4 4.0 1.7 4.4 3.5 2.2 6.6 5.9 2.6 4.7 1.3 0.4 4.7 5.0 2.5 4.0 3.9 7.8 3.6 2.4 9.3 4.9 2.0 2.9 3.8 7.2 3.2 0.9 3.9 3.8 2.1 3.0 2.5 8.Low-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.5 2.1 8.2 2.3 3.1 5.7 5.6 3.0 1.1 7.0 7.0 5.7 4.3 3.4 5.2 7.3 4.8 1.5 3.2 3.3 2.0 3.2 2.6 1.7 4.0 6.3 3.7 2.1 3.2 2.8 8.4 3.6 5.9 5.7 5.7 1.0 2.2 3.3 1.2 1.8 3.7 1.5 2.6 6.6 4.6 7.0 5.5 5.5 4.0 3.2 2.0 1.6 2.9 6.0 6.6 8.0 1.5 5.9 1.2 3.1 1.5 5.5 1.0 3.1 2.4 1.7 5.1 3.9 6.9 2.6 8.8 1.7 2.5 1.9 1958 3.3 6.8 2.1 3.8 3.0 3.2 3.9 3.2 1967 6.2 3.8 6.3 3.2 4.9 7.2 0.1 3.3 5.5 1.3 7.4 6.6 1.7 1.7 2.1 3.7 2.3 3.4 5.0 3.4 3.3 5.1 4.1 2.2 3.1 3.8 3.8 8.5 1.7 2.0 3.8 1.3 2.4 3.7 2.6 8.5 5.1 5.6 1.2 3.0 2.3 2.6 3.5 2.7 3.5 1.9 3.3 3.4 2.5 5.8 0.3 5.7 5.0 3.6 3.0 5.2 3.9 5.9 2.9 3.4 2.1 2.5 8.3 3.4 7.8 2.3 3.1 1.0 2.4 2.2 1.6 3.6 5.4 7.3 7.9 1.9 2.1 2.3 2.2 2.7 1.1 2.3 8.8 2.2 2.9 1.7 6.7 5.

6 -4.8 0.1 0.3 -1.4 -0.7 2.9 2.2 1.6 3.3 0.6 2.1 3.7 2.1 8.7 1.9 4.9 1.8 1.3 2.8 2.1 -1.7 2.0 4.9 10.8 4.4 3.7 3.4 2.0 -3.7 12.0 2.2 17.6 -0.9 1.5 -1.9 0.4 -1.6 1.3 -5.5 8.2 18.6 0.4 0.3 2.1 11.0 -0.5 0.7 1.5 0.0 -2.3 8.5 4.3 -1.9 6.1 3.9 3.4 1.3 3.4 0.3 3.4 2.1 6.3 3.8 0.9 5.2 -1.1 0.4 3.5 -4.8 0.7 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 3.5 0.4 14.4 5.6 0.2 0.2 1.6 5.7 15.5 4.4 2.6 0.5 3.7 2.7 -2.0 4.3 1.0 -0.2 -2.4 -2.1 12.4 4.0 3.2 10.4 7.9 8.2 0.3 2.6 7.5 3.8 -1.1 5.4 3.2 -0.8 -0.4 -4.2 2.8 1.8 6.9 2.6 5.9 6.6 -1.6 7.6 3.2 3.3 -7.9 7.5 7.0 4.9 1.1 -4.9 0.9 -1.9 13.5 -0.4 0.0 -1.1 -2.0 7.6 -3.4 -0.2 -0.1 8.2 -3.5 0.3 2.0 1.6 -0.7 6.9 3.0 10.3 2.2 12.6 0.5 -1.0 -0.0 -4.0 3.3 0.3 3.7 1.4 3.3 2.7 3.7 3.5 -3.5 4.7 2.0 0.1 11.1 2.4 5.0 -1.4 4.6 -1.7 1.3 0.3 0.1 7.2 4.3 13.3 5.9 1.1 0.9 10.4 8.6 2.1 -1.5 1.1 -4.2 7.3 6.2 -1.8 15.9 1.2 -1.5 5.5 0.5 0.1 3.6 2.5 0.3 1.0 -0.1 1.1 1.7 1.8 4.1 -2.8 19.7 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.7 4.2 -1.2 4.7 -2.6 2.4 3.1 5.2 -0.4 7.9 0.8 2.3 3.0 13.6 15.5 3.3 -1.6 5.8 2.8 0.0 2.2 2.0 3.5 -2.5 0.6 4.8 1.3 0.7 -1.Low-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.5 2.5 14.7 2.1 0.7 -5.6 9.9 6.3 4.7 11.1 -0.5 -0.1 4.9 -2.5 3.6 -2.5 -1.9 -1.5 0.3 3.7 -1.8 -2.2 -0.3 0.6 1.8 8.4 15.0 3.3 8.3 -2.7 8.9 11.6 0.2 1.3 3.6 3.4 -0.8 0.3 1.8 -0.3 -3.3 2.2 2.0 -1.1 9.7 1.2 7.0 -1.9 -1.3 14.6 3.1 11.8 -2.4 2.4 3.4 3.5 -0.7 0.4 -0.0 -7. Inc.3 1.3 -1.6 6.1 4.2 2.2 4.6 2.0 -1.4 -2.8 8.2 0.3 3.7 -0.7 -6.7 3.9 4.3 2.0 4.4 -2.2 0.8 2.7 6.3 3.6 1.5 0.2 -3.7 -1.3 4.2 3.9 8.8 2.5 9.6 -3.2 4.0 0.2 5.0 3.8 3.6 -0.0 1.2 5.7 -0.8 2.3 0.7 -1.2 1.8 6.8 0.4 1.9 -0.4 0.6 2.3 2.1 -0.4 9.7 -2.2 0.3 0.7 1.1 0.9 3.6 1.0 6.8 0.3 2.9 -1.7 15.0 2.3 -3.8 -3.0 -1.5 0.3 0.5 4.2 14.0 0.4 2.5 0.5 11.6 1.0 2.7 2.6 11.9 2.2 3. 48 .5 -0.6 3.1 2.4 -0.8 -2.4 3.6 -3.1 4.2 2.9 5.7 2. © Copyright 2010 Morningstar.1 7.6 3.6 2.9 2.8 1.6 5.5 4.9 0.4 3.3 2.0 -2.1 0.3 -5.0 0.9 -4.4 -2.5 3. All rights reserved.7 3.6 -2.3 1.9 3.2 2.6 2.9 14.4 3.8 2. Table A-5 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1971 -0.0 0.2 3.5 0.3 3.7 9.2 0.7 1.8 2.4 5.

7 1.3 7.9 1.5 0.4 0.1 -3.2 -1.6 0.4 1.1 0.4 2.5 -0.6 1.1 1.0 1.2 -4.0 10.2 -1.2 0.1 -2.2 2.0 7.6 3.5 1.9 1.2 -2.6 0.0 -2.6 2.1 2.1 -6.5 1.5 0.6 0.3 -2.6 1.0 11.1 1.0 -6.3 0.2 3.0 0.4 -1.4 0.2 7.5 -4.8 -4.9 -1.7 10.9 1.2 0.1 -1.9 3.3 1.6 3.8 1.3 -2.6 4.6 3.8 1.6 -4.6 1.2 1.9 1.6 0.4 1.4 -0.5 2.9 3.6 0.7 5. Inc.7 1.8 2.8 0.3 1.Low-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A. 49 .9 1.6 -7.5 -1.8 -2.3 -1.2 -3.5 3.7 2.4 3.1 1.5 12.8 -4.8 -1.1 1.7 5.6 0.1 -1.8 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.2 5.3 1.3 2.4 0.5 -1.1 5.5 4.4 0.5 2.2 1.2 -4.5 3.2 2.3 -2.2 -0.7 2.5 2.5 2.7 0.8 -1.9 0.0 2.7 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 -3.5 2.8 2.9 -2. © Copyright 2010 Morningstar.1 -3.2 -4.3 2.9 1.9 0.5 1.1 1.0 -10.3 2.2 0.5 -0.6 2.8 2.4 8.6 2.0 -0.3 8.0 1.3 0.0 -0.5 2.6 1.4 1.2 -0.2 3.9 -4.1 -1.5 1.5 -0.1 0.2 1.9 -1. All rights reserved.1 1.8 1.0 2.8 7.8 3. Table A-5 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1986 -8.9 12.0 0.4 0.0 0.0 3.3 3.6 -1.5 -3.5 3.0 1.9 7.3 1.1 0.2 0.6 1.8 -0.2 -0.1 1.4 0.5 3.7 -2.5 1.2 -3.8 -0.8 -1.3 -1.3 2.8 -4.2 0.2 0.4 -0.7 1.2 4.9 2.0 7.1 -1.4 3.5 2.6 -1.

4 8.0 3.1 6. Table A-5 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 2001 12. All rights reserved. © Copyright 2010 Morningstar. 50 .2 8.6 4. Inc.7 2002 2003 2004 2005 6.Low-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.6 2.1 2.7 4.0 8.9 5.6 5.1 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.9 10.1 4.

8 1.9 8.8 4.9 11.0 2.0 10.5 2.1 4.6 4.6 18.7 2.7 1.8 5.0 5.9 5.8 3.5 23.0 3.2 13.7 9.4 18.7 5.4 6.3 2.9 4.5 -0.4 34.7 4.0 16.3 5.8 2.9 1.4 5.6 7.2 4.8 2.3 1.0 8.9 4.5 2.3 16.2 9.0 4.3 2.5 5. All rights reserved.3 3.5 1.5 16.8 11.6 2.8 3.2 6.5 14.3 20.5 12.3 1.Micro-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.6 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 -15.2 7.2 8.4 2.2 6.5 7.2 4.4 4.8 2.7 3.1 4.8 13.9 18.9 2.4 17.1 17.1 10.8 2.1 10.2 2.1 4.9 14.6 14.9 6.2 8.7 5.2 7.4 13.9 18.1 6.1 16.1 2.5 0.7 5.8 14.8 15.4 7.9 10.6 20.3 8.6 2.6 15.5 17.2 3.5 3.1 7.2 3.6 21. © Copyright 2010 Morningstar.5 4.5 15.8 10.1 -8.3 9.3 9.2 21.2 19.3 12.7 15.3 5.9 18.8 6.7 5.9 7.9 7.2 3.9 14.7 8.6 5.6 16.9 4.8 12.0 7.0 22.0 2.5 10.9 20.1 7.1 10.9 10.0 3.9 9.7 21.9 10.9 5.4 22.8 2.6 19.3 8.4 8.7 20.7 4.6 7.3 4.9 15.5 14.6 18.2 5.1 7.4 4.9 7.2 12.5 4.3 7.7 3.1 17.5 10.9 16.3 9.7 8.7 6.8 5.0 19.3 3.6 35.2 5.4 6.4 5.9 9.5 12.5 10.6 13.4 4.5 6.0 6.8 5.4 6.3 13.5 7.5 6.3 15.2 11.8 4.2 11.6 5.8 12.7 4.2 13.2 7.0 4.6 27.7 5.3 5.5 5.7 6.4 4.3 5.4 6.8 7.6 14.1 10.7 3.8 6.2 3.8 12.9 2.3 7.5 8.1 11.2 1.2 6.6 10.5 2.0 7.4 9.8 1.1 13.2 15.3 3.4 5.6 5.0 8.4 7.9 4.2 1.6 4.8 7.7 6.5 9.0 17.3 11.5 6.5 17.8 8.8 10.0 29.9 9.0 3.7 1.7 3.5 7.8 22.7 11.8 9.1 18.6 21.5 4.7 12.1 -16.2 -5.6 6.1 7.5 0.2 12.3 3.0 6.8 2.6 14.2 13.0 1.3 20.9 2.3 7.2 7.5 1.4 10.6 7.4 6.5 5.1 4.3 6.9 8.0 3.1 4.8 1.1 6.5 11.6 6.9 5.9 30.5 9.0 14.4 10.1 1.9 9.8 12.1 4.8 0.4 10.6 6.1 15.2 2.8 11.4 7.2 5.8 3.4 5.5 6.4 5.9 2.1 5.0 6.1 5.9 17.9 4.7 34.4 11.2 8.7 13.4 5.9 9.4 14.7 6.8 7.4 7.3 2.1 17.2 4.3 20.0 6.5 5.2 33. Table A-6 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1926 -19.8 7. Inc.1 1.5 2.5 21.7 5.5 6.3 17.2 1.6 19.9 1.9 20.6 16.8 16.4 2.6 10.6 11.7 24.1 13.7 4.3 5.0 4.8 3.6 4.4 12.3 28.3 5.8 5.5 5.8 9.2 12.5 4.1 6.9 5.9 16.4 25.4 3.6 2.6 6.4 8.8 4.6 7.1 2.0 8.0 5.3 10.4 20.4 10.4 1.8 2.1 6.1 3.2 5.1 5.2 6.5 19.9 4.1 14.5 7.5 17.4 9.5 2.1 1.2 4.0 5.6 5.0 6.9 4.7 9.0 8.7 8.6 4.7 3.8 2.2 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.9 4.1 15.9 13.1 13.7 2.6 5.0 -10.4 1.2 19.0 7.9 10.1 2.7 7.5 16.9 8.1 6.8 25.5 2.2 12.0 7.7 14.0 3.5 3.7 2.4 14.7 5.0 6.1 8.0 4.8 6.6 7.3 11.3 13.2 6. 51 .9 3.4 5.0 9.9 3.6 3.0 5.1 5.4 19.4 12.8 4.9 4.4 6.9 7.1 1.7 2.7 5.4 13.5 6.6 19.8 13.3 8.7 8.2 21.3 7.3 8.2 2.2 2.9 6.5 12.3 4.7 7.2 17.0 21.0 8.9 10.7 2.2 9.7 7.6 4.8 6.2 19.7 5.7 6.5 23.7 16.2 3.8 5.5 17.8 4.2 29.8 3.2 3.4 9.2 4.2 3.2 7.3 20.6 4.8 15.0 2.8 2.9 6.2 7.0 4.5 7.5 12.4 5.2 12.4 1.2 8.3 3.0 2.0 13.5 8.7 5.

1 4.7 4.9 2.9 4.9 5.5 3.9 5.4 5.9 4.9 2.4 7.2 6.8 3.3 4. Table A-6 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1926 4.4 5.2 5.8 4.0 6.9 4.2 5.8 3.1 4.2 6.4 3.1 5.0 3.4 6.6 5.8 5.3 6. © Copyright 2010 Morningstar.6 1.5 5.9 5.3 4. 52 1934 4.4 5.1 5.4 3.8 8.1 4.2 6.5 5.1 5.5 4.1 5.0 6.3 5.3 3.4 2.9 4.7 5.0 3.4 3.0 7.7 4.2 5.4 3.0 6.2 4.2 4.9 4.2 2.3 3.1 5.9 4.6 3.9 4.9 6.8 3.6 6.4 5.3 5.6 3.1 3.0 4.4 3.6 3.6 5.9 3. Inc.1 5.9 3.7 4.5 3.0 3.4 6.9 3.2 4.7 6.0 4.9 3.1 3.9 4.4 5.6 2.9 4.3 5.7 3.6 1929 6.6 4.5 4.2 3.5 1932 6.6 4.8 3.2 6.0 4.6 6.0 3.7 3.8 6.4 5.7 5.2 5.2 5.1 6.0 7.8 3.0 3.1 4.5 5.2 5.4 4.7 5.0 7.7 3.5 4.7 5.8 4.8 4.1 8.5 3.9 5.3 4.8 3.9 5.5 7.1 4.1 4.2 1937 3.9 5.3 4.2 3.4 4.2 4.7 5.1 4.8 3.5 4.2 4.6 6.7 5.0 6.1 4.6 3.0 4.5 5.0 3.2 5.8 5.5 4.5 2.5 2.1 3.1 4.8 4.7 2.1 6.8 3.8 3.4 4.3 3.8 4.6 5.8 7.1 2.8 4.2 4.7 4.9 4.9 4.2 5.3 6.6 4.6 4.7 7.8 7.3 5.4 3.0 4.5 5.8 2.7 3.3 3.6 5.5 3.0 4.1 5.4 6.7 7.6 4.5 5.5 5.6 5.0 7.3 4.8 5.5 2.0 6.6 2.7 1938 3.4 2.Micro-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.2 5.3 3.4 5.2 7.5 5.1 5.7 3.0 5.6 5.6 4.7 2.4 6.2 3.7 4.7 7.3 5.8 5.4 7.6 3.4 3.8 3.4 5.6 4.8 2.8 3.3 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.9 4.2 5.6 6.7 3.2 5.2 4.5 7.4 5.2 2.0 1927 5.1 4.2 4. All rights reserved.6 5.7 7.7 4.4 3.5 3.4 4.7 5.3 5.1 4.8 7.5 7.9 3.6 4.7 4.6 3.1 1936 4.0 5.9 6.3 4.6 3.0 4.4 5.7 6.5 2.1 4.2 5.1 7.6 4.9 2.3 5.5 5.1 2.8 4.7 4.6 3.4 5.3 4.7 3.6 3.5 3.8 4.9 4.2 5.3 2.4 5.2 4.5 4.9 3.4 6.1 4.3 5.8 3.0 6.7 4.0 4.4 6.0 3.4 5.6 1.1 5.6 2.4 7.6 4.9 3.3 2.0 5.8 2.6 2.5 3.7 5.6 3.7 6.3 4.0 6.7 3.0 4.4 5.2 3.9 5.9 5.0 4.3 4.3 3.0 3.3 4.3 4.8 6.4 4.8 6.9 4.8 7.0 5.0 4.7 4.1 3.9 6.9 4.3 7.1 3.5 4.8 5.3 5.0 5.5 4.4 5.5 5.7 2.6 3.4 7.4 4.6 3.5 5.5 6.6 3.7 4.6 6.4 7.9 4.6 3.8 5.1 4.2 4.4 5.8 7.3 4.1 6.5 4.4 5.0 4.1 3.5 4.2 2.9 4.4 3.1 5.8 4.1 6.0 5.2 1931 7.4 4.1 5.2 4.8 3.8 4.3 1935 4.2 3.5 3.9 3.1 3.9 5.9 5.0 8.4 4.3 6.3 4.6 6.6 5.0 4.1 5.6 4.5 3.8 5.5 5.0 4.9 3.6 5.7 7.6 3.7 7.8 3.1 7.1 5.3 5.9 5.8 3.4 3.3 5.1 2.9 5.0 6.4 3.5 3.1 4.2 5.3 3.8 3.0 5.0 5.0 3.0 3.2 2.9 3.8 3.7 7.6 3.4 4.5 7.5 6.5 4.7 4.0 2.1 5.8 3.7 4.5 4.3 4.5 7.3 3.7 4.8 4.3 1928 5.3 4.6 3.5 5.9 2.9 4.0 5.6 4.0 4.9 4.8 6.0 4.5 5.8 8.6 3.7 4.7 3.0 5.4 4.2 4.3 3.7 5.7 5.5 4.3 4.8 4.7 7.4 3.2 4.3 7.4 6.1 5.3 5.5 2.9 4.7 2.0 4.3 5.6 5.1 4.2 5.7 4.2 4.3 4.6 7.2 3.0 5.0 2.1 4.4 6.5 4.2 4.9 3.4 5.3 5.8 6.7 6.1 5.8 6.9 3.6 3.7 3.9 3.6 6.9 3.5 2.9 5.9 3.4 3.4 1933 6.7 4.5 4.1 6.8 1930 7.3 5.7 3.3 3.6 5.7 2.3 4.4 3.9 2.4 3.6 6.9 5.3 2.8 4.2 4.3 1940 5.9 6.0 4.9 5.3 3.7 4.5 5.2 7.3 4.1 6.9 1939 4.0 4.0 3.4 5.5 6.5 3.3 3.8 4.1 5.4 5.4 5.9 3.9 4.1 2.0 7.4 4.0 5.6 4.3 3.3 3.8 .8 3.6 6.3 4.6 5.3 3.5 3.2 3.2 5.

7 5.4 0.1 5.3 1.8 3.9 5.7 -0.Micro-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.5 1.2 1.1 5.3 1.0 -1.7 7.0 7.8 7.3 12.2 4.0 9.9 0.7 2.2 2.6 1.6 -7.9 9.3 9.7 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.7 6.3 5.5 5.0 6.7 2.1 10.0 8.3 5.2 5.6 4.1 5.7 7.2 5.4 3.6 -1.2 1.0 -7.4 -0.1 5.6 1.3 5.3 1.8 6.1 6.0 3.2 7.1 7.0 4.5 1.4 4.6 5.7 -6.9 -1.4 0.8 8.5 3.5 7.2 2.3 1.9 5.0 6.3 7.5 -0.6 3.5 2.8 4.2 1.9 1.6 5.1 -2.4 1.7 8.5 5.9 6.3 2.8 5.2 9.6 6.8 5.2 7.5 2.8 1.7 5.9 1.6 7.2 3.2 -3.0 3.3 0.0 4.4 -6.8 5.2 8.3 3.0 7.8 -1.6 2.5 7.4 3.2 6.8 4.3 0.0 4.2 3.4 5.4 1.5 5.4 -1.1 1.9 7.4 -1.7 -0.5 -5.4 4.1 7.2 0.3 0.6 -4.9 -1. Inc.3 3.5 20.2 3.4 -1.2 1.8 7.1 -1.8 4.0 0.4 7.5 13.3 3.2 1.9 7.5 3.1 2.5 -3.1 0.2 10.2 4.3 1.0 0.4 4.0 5.5 -2.5 3.9 4.3 -0.4 -0.2 -7.0 4.4 13.1 9.9 -0.4 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 27.7 5.9 -5.5 6.5 18.9 -2.3 3.4 1.0 7.3 2. All rights reserved. © Copyright 2010 Morningstar.6 1.6 4.3 4.4 6.9 2.7 1.0 7.9 6.4 14.5 3.4 5.8 3.4 2.4 3.4 10.0 1.1 1.6 5.4 6.1 -1.8 17.3 8.1 11.2 -2.7 -0.8 -1.5 3.5 0.2 4.9 1.6 7.0 1.6 4.9 -7.3 6.1 11.4 1.2 2.1 1.2 5.6 7.7 4.3 5.5 6.3 8.3 -1.5 0.6 2.1 8.8 6.7 1.7 3.9 8.5 15.7 -0.0 1.5 2.2 2.3 -4.4 -1.1 3.6 3.0 5.6 4.7 2.8 0.2 7.4 23.6 10.7 3.1 2.3 2.5 -0.0 -0.1 1.6 -6. Table A-6 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1941 27.0 1.2 5.7 4.0 -4.9 7.2 -4.5 15.7 5.5 4.6 -3. 53 .1 5.7 3.2 5.9 2.7 0.5 8.1 3.4 6.0 3.5 4.0 0.4 6.3 -5.8 7.4 1.1 4.3 6.7 2.7 6.8 18.5 5.6 1.8 0.2 0.8 3.8 1.0 -0.4 4.8 -2.4 0.

9 4.1 4.8 2.7 3.3 4. Inc.3 2.0 3.7 0.1 5.9 2.7 1947 2.9 4.1 3.2 2.6 3.4 2.6 5.4 5.3 6.7 2.9 2.9 6.7 2.5 4.3 2.9 1954 5.3 2.0 3.6 2.2 3.0 2.1 3.1 5.9 2.9 3.1 4.9 7.1 5.6 4.3 2.6 3.0 6.2 4.4 2.0 4.2 1.4 3.6 6.4 4.2 3.0 5.7 4.1 3.5 3.0 3.5 1.1 5.5 4.8 1.7 5.5 4.3 6.8 6.7 4.3 3.2 4.7 5.8 3.5 2.0 2.8 2.9 2.5 1.6 5.6 3.2 5.1 2.4 4.5 3.8 2.7 3.0 2.0 4.2 3.4 3.7 4.6 4.9 4.2 3.8 3.9 1948 2.4 5.5 3.8 4.1 6.2 4.5 4.5 3.7 6.5 3.6 4.3 5.3 1.5 4.6 2.3 3.3 2.1 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.2 3.9 1.7 3.3 3.4 4.6 5.3 4.6 3.7 3.2 6.3 1.7 6.6 2.5 3.3 2.6 6.6 6.0 2.5 4.3 2.7 3.2 4.7 2.3 5.7 6.0 7.6 3.3 3.0 2.8 3.2 3.3 5.3 0.0 4.1 2.3 4.5 3.4 3.0 4.6 1953 5.0 1.9 2.4 3.8 2.1 1.7 3.6 3.3 3.0 4.0 5.2 4.6 2.6 2.0 2.4 1.2 2.1 2.1 4.1 2.9 3.8 4.9 1.3 2.0 2.9 3.2 3.6 3.4 3.8 3.5 3.9 5.0 1.6 1944 4.0 3.2 3.4 6.5 1.3 1950 3.1 4.7 2.4 4.0 2.7 3.0 1955 5.4 4.1 3. All rights reserved.5 2.0 2.6 3.4 2.2 4.6 4.4 4.0 5.6 3.1 3.8 2.9 7.6 3.8 3.7 6.3 2.2 3.5 2.6 3.2 -0.8 1.3 5.4 3.7 2.2 7.6 5.6 2.9 2.2 2.6 2.8 3.5 1.7 3.9 4.7 1.0 6.2 3.4 4.6 5.5 3.5 2.4 2.9 3.8 2.2 4.7 6.7 5.4 2.2 1.0 2.5 3.7 4.3 2.6 3.5 1.9 2.2 3.4 2.7 6.5 0.8 1945 3.1 3.1 4.9 4.0 3.8 2.5 2.5 5.5 3.9 3.4 2.5 3.3 2.2 4.9 3.4 1.0 3.8 3.9 2.4 4.4 3.7 2.7 4.2 7.7 3.6 6.3 3.9 4.5 5.1 2.2 3.8 4.6 4.5 2.9 5.8 1.4 3.1 4.9 4.5 2.8 3.3 2.6 3.7 4.4 1.2 2.4 3.6 1.7 5.5 2.2 2.0 2.7 4.5 3.3 2.9 2.6 2.8 2.3 5.1 4.0 4.3 3.6 6.3 3.0 4. Table A-6 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1941 6.9 1.5 4.9 2.6 2.8 3.4 4.1 5.5 2.1 2.9 5.1 3.2 3.2 3.9 2.7 4.1 3.4 1951 3.1 5.9 3.0 1.1 3.0 6.3 5.7 5.6 6.8 5.2 2.0 2.4 4.9 1.4 4.3 4.6 2.8 5.8 3.7 6.0 1943 5.0 4.7 0.1 5.3 3.8 4.0 3.5 3.2 5.7 2.2 0.4 2.0 1.3 3.7 2.7 4.8 5.6 4.3 3.1 4.5 4.8 4.1 1.6 2.1 4.7 2.1 2.5 5.4 4.5 4.6 2.1 2.2 3.7 3.9 5.9 2.1 2.5 2.1 4.1 1.9 1.0 3.8 2.6 4.3 3.2 2.2 3.6 4.3 4.7 1.9 1942 6.7 4.2 4.7 1.9 3.3 0.3 1952 4.7 3.0 2.1 3.3 6.5 4.5 2.6 7.8 2.0 1.3 1.1 2.8 1.7 1.8 5.5 2.8 3.0 2.5 3.5 4.2 4.0 4.5 4.1 2.5 5.2 0.4 5.3 3.1 3.7 3.2 0.7 6.2 1.5 4.7 3.3 3.3 5.2 1.7 5.2 3. 54 1949 3.3 4.3 1946 1.8 4.8 3.0 7.3 6.4 3.4 2.5 3.3 4.1 5.7 3.1 5.0 5.7 3.3 3.3 4.7 1.9 5.8 2.8 1.9 5.2 4.0 1.6 2.9 2.3 1.3 4.4 3.0 4.5 5.6 3.5 2.1 0.9 4.0 5.3 3.7 1.9 2.7 6.8 4.9 4.1 6.1 2.6 4.7 3.9 .3 1.1 2.6 4.2 3.1 2.9 6.6 3.2 3.1 3.5 4.1 3.6 6.6 4.9 5.6 3.9 4.0 3.2 6.8 -0.2 6.4 1.1 3.2 2.7 3.5 1.6 2.8 4.6 2.2 2.1 4.0 3.0 3.7 1.5 0.1 3.7 5.8 3.3 3.3 4.1 2.4 6.5 4.6 3.6 6.7 1.0 2.8 3.7 1.7 1.9 3.4 3.8 2.2 2.4 5.5 4.4 4.3 2.6 0.1 3.7 5.9 3.2 3.Micro-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A. © Copyright 2010 Morningstar.4 3.4 3.3 1.4 3.8 3.3 6.2 1.1 3.3 4.2 3.1 2.1 4.9 2.1 4.4 4.0 2.9 3.9 1.1 3.9 4.9 2.9 2.0 4.2 1.8 4.

7 17.0 27.8 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.9 16. © Copyright 2010 Morningstar.6 4.0 1.8 10.6 -3.8 14.7 4.2 2.3 3.4 6.8 5.6 9.5 1.1 1.1 13.5 2.0 10.0 17. 55 1967 1968 1969 1970 . All rights reserved.1 6.5 1.0 4.6 1.8 7.4 1.9 12.2 7.9 14.3 8.5 1.2 10.9 15.1 1.3 19.4 12.7 9.3 13.1 4.7 8.7 4.4 11.8 11. Table A-6 End Date 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Start Date 1956 5.2 20.4 -2.1 13.6 2.7 6.3 -1.9 23.4 9.8 15.1 3.1 12.5 11.2 10.4 9.6 7.Micro-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.6 1.6 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 6.6 9. Inc.9 9.7 1.0 3.7 3.

3 3.6 -0.7 7.9 4.2 4.4 6.8 4.0 7.1 3.7 6.1 5.2 3.0 4.4 2.9 10.5 4.8 1.7 -6.7 7.9 4.2 8.9 11.6 -2.5 5.7 4.7 11.4 3.2 2.2 3.6 .9 7.6 3.1 5.1 8.1 6.2 -0.9 4.5 0.6 2.8 8.5 6.2 3.7 4.3 5.5 12.7 3.0 1.8 4.0 4.7 3.6 4.3 6.7 7.9 2.3 6.4 4.4 4.2 0.1 4.2 3.9 7.8 7.0 11.2 11.8 4.7 4.3 5.6 3.9 3.6 4.1 4.0 -0.1 3.1 3.1 1960 6.8 3.2 2.9 7.4 4.9 1.0 7.4 3.5 9.1 5.5 -0.4 11.1 10.3 2.4 4.4 3.8 2.4 7.5 9.5 3.8 4.8 -0.3 7.5 9.3 3.2 8.3 1.8 4.6 7.3 4.6 3.2 8.8 7.4 3.9 3.8 0.5 2.2 10.5 2.8 7.7 7.3 3.5 4.6 4.0 4.5 7.9 3.9 6.0 7.0 6.7 3.0 4.7 10.1 2.4 3.1 4.3 5.7 10.4 5.9 2.4 5.5 4.2 0.9 5.0 3.8 2.5 3.8 8.1 7.8 3.5 4.7 4.7 4.0 1961 6.7 2.8 7.8 8.9 5.1 8.2 9.7 5.9 3.3 4.9 11.7 3.2 7.4 0.7 2.0 3.7 4.4 8.3 5.0 3.2 0.8 4.3 3.3 2.4 4.5 4.6 9.2 6.4 4.9 7.6 8.0 9.3 6.6 4.8 4.0 8.0 4.Micro-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.9 1.5 2.2 1.5 3.7 2.0 4.8 5.8 3.7 11.4 4.0 1.5 1.3 3.3 8.5 6.0 -5.9 9.9 2.7 6.9 7.0 2.4 -1. Table A-6 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1956 6.3 4.4 7.0 8.1 8.6 7.1 4.7 3.4 4.2 7.8 4.8 9.6 5.2 1962 7.6 5.6 -4.9 1966 13.5 4.2 7.1 4.5 2.7 4.1 3.8 6.2 4.9 1.4 1.7 3.9 4.7 1.3 2.7 11.1 2.0 4.8 4.4 2.2 7.0 4.5 4.2 1957 6.7 10.8 3.8 4.6 4.2 7.5 1.7 7.8 2.4 4.0 2.2 3.6 -0.6 6.5 1968 1969 1970 -5.6 4.0 0.7 4.3 1963 8.1 3.0 12.8 5.3 4.8 6.2 -0.2 6.2 8.3 8.4 1.7 7.0 3.6 3.7 4.8 4.3 2.4 3.4 2.2 0.8 3.6 11.0 8.5 9.5 4.6 2.0 1.8 1.5 3.8 4.0 7.3 1.3 -1.2 0.5 11.6 10.1 5.1 4.5 3.1 3.5 4.9 6.9 1.3 6.4 4.8 1965 14.1 4.9 3.3 1958 6.5 4.6 6.5 4.1 3.4 5.2 1.8 2.9 3.5 6.4 7.4 4.1 3.1 1.3 0.0 4.1 6.2 10.5 5.2 2.5 -1.2 2.5 2.8 7.9 2.5 4.7 0.5 -12.6 -0.1 5.8 5.9 8.1 2.6 8.5 1967 13.0 4.2 4.1 3.8 5.5 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.8 -15.6 3.8 6.9 3.4 4.0 7.3 3.3 3.4 1.5 1.8 1.4 4.5 4. All rights reserved.0 8.2 4.3 5.3 2.9 5.6 4.2 6.6 11.8 9.2 4.7 4.2 5.8 4.1 4.8 4.8 4.3 2.0 3.2 3.6 -1.6 2.4 2.5 4.7 6.6 0.9 7. 56 1964 12.7 2.8 3.6 0.1 4.4 4.3 8.6 10.0 3.7 6.8 3.5 2.5 5.5 3.2 3.5 4.6 8.3 2.9 4.6 3.1 1.2 2.6 3.0 2.1 3.4 3.9 5.2 3.7 1.2 5.5 4.1 3.2 3.8 3.3 9.0 11.1 5.5 2.8 2.4 1959 6.1 2.1 4.1 3.8 2.0 5.1 4.1 6.4 3.1 3.5 0.0 -11.1 4.3 4.7 1.9 3.1 7.1 2.0 5.1 3.4 7.9 2.7 4.4 11.8 4.6 3.3 4.8 6.2 4.7 4.4 3.8 -0.2 6.5 6.1 5.7 4.9 3.5 3.5 1.4 3.6 9.1 5.6 4.2 4.6 3.0 -0.2 7.9 5.8 3.4 3.7 2.0 3.8 -1.8 2.4 -1.8 4.5 5.0 0.3 3.7 4.8 1. Inc.7 4.1 6.9 4.4 4.3 4.4 4.0 2.7 4.4 3.8 8.7 3.2 6.2 4.6 5.8 1.5 -0.3 6.9 4.7 6.7 11.4 7.0 3.4 6.5 2.1 5.0 3.2 3.7 4.0 5.2 2.0 10.9 2.8 1.7 6.0 7.5 4.3 9.5 4.8 3.5 4.9 3.0 1.3 7.0 4.2 4.2 2.2 5.2 1.5 4.0 5.9 4.7 4.6 12.3 2.2 4.9 2.3 3.5 3.6 11.6 4.7 7.1 3.3 -7.9 3.1 4.4 3.7 8.9 5.7 2.6 4. © Copyright 2010 Morningstar.3 2.1 3.6 3.7 3.6 4.1 3.1 5.8 4.9 3.8 2.6 4.9 3.4 3.6 2.8 2.8 5.1 2.0 7.2 9.6 4.8 4.

1 -2.0 3.0 4.9 5.0 2.4 5.6 -0.1 4.9 7.2 1.1 5.5 3.8 4.1 0.9 2.2 1.6 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.7 -4.2 0.4 5.0 3.1 7.4 1.6 1.4 -3.4 -1.2 -0.1 -2.8 4.4 1.8 22.2 -0.7 15.1 3.3 2.9 4.7 10.9 -5.1 3.7 3.1 -1.5 1.7 10.2 8.7 0.0 9.6 0.9 -1.6 1.9 6.0 4.3 -3.3 -3.2 2.9 -2.6 5.1 2.6 -1.Micro-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.2 15. 57 .6 1.0 -3.7 15.3 2.1 9.2 0.1 0.8 4.8 -10.3 3.7 -7.2 -11.5 17.2 8.9 -3.2 3.1 -3.2 2.7 -1.8 2.8 -5.5 -4.2 0.9 -3.9 5.0 2.3 -3.5 1.2 1.0 1.8 8.2 -1.6 0.0 5.9 22.1 -6.5 4.5 1.8 18.8 3.3 4.7 1.6 3.7 6.8 14.2 1.0 -3.2 -2.8 17.8 -1.1 3.1 -10.3 -7.2 8.1 5.1 -2.4 4.5 -4.1 1.5 0.7 1.9 -3.9 -4.5 1.2 -4.5 2.1 3.3 2.7 -2.8 2.8 -4.8 6.3 -1.5 -1.7 -1.7 0.8 2.6 1.4 2.8 -12.5 0.5 3.9 -0.6 2.4 0.6 1.7 1.0 0.3 3.0 5.5 2.0 1.7 -14.4 -3.8 4.4 5.4 0.0 3.7 0.6 -4.6 4.3 3. All rights reserved.4 4.7 -2.4 0.6 1.9 12.7 2.0 1.6 2.5 -2.1 1.4 14.6 3.8 8.0 1.8 -0.8 1.8 -1.2 10.6 -1.6 4.3 2.8 -4.4 1.0 -4.7 1.1 4.8 -0.3 1.2 0.1 -5.7 -2.6 -6.5 11.7 -3.3 3.6 18.4 4.3 1.9 0.7 1.6 1.2 0.0 0.8 2.1 10.7 2.1 -3.2 7.1 12.5 -4.5 -5.3 9.0 -7.4 5.7 3.7 -2.3 -5.9 2.4 4.6 3.7 1.3 1.7 1.5 3.7 1.8 3.4 1.2 0.0 1.1 -9.6 4.6 -4.7 1.6 3.0 -1.7 3.0 0.0 14. © Copyright 2010 Morningstar.4 -1.6 -1.4 0.4 4.6 -1.6 1.2 6.0 2.3 -0.1 -1.4 -3.2 -7.7 -1.3 2.7 3.7 7.6 2.8 -0.2 9.0 -5.7 -4.2 1.8 1.7 -2.3 -9.5 -2.2 1.4 0.2 -2.4 1.1 -0. Table A-6 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1971 -1.8 0.3 18.3 -1.8 2.3 11.4 2.4 -1.4 -0.7 1.3 4.5 7.8 6.7 3.3 5.1 13.4 7.1 1.2 16.6 3.8 3.6 1.0 9.0 5.4 -1.5 3.2 3.6 2.4 5.0 -0.1 5.4 11.0 3.8 2.8 2.1 -2.7 3.7 4.1 9.4 -4.4 3.2 2.4 4.7 -4.0 16.8 3.7 4.4 -6.2 3.3 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 3.9 -13.5 9.3 -0.7 1.6 -2.3 1.5 -1.0 4.9 4.0 21.3 14.2 4.1 16.0 3.2 -0.1 0.4 1.7 8.9 -1.1 0.3 1.7 -2.2 0.3 -9.0 1.1 -2.6 2.7 11.7 2.3 2.3 1.8 -0. Inc.4 2.2 3.6 3.4 9.9 12.0 2.8 8.4 -3.3 -7.9 -3.6 0.2 17.9 2.7 17.6 0.2 4.3 -6.8 5.9 0.2 1.4 -0.0 12.7 -4.0 -0.5 9.1 9.0 18.7 2.6 -3.5 2.8 3.0 -2.3 2.3 -8.2 4.9 5.1 4.6 3.4 -4.5 3.2 0.1 5.1 1.6 3.0 2.1 16.5 0.4 1.5 1.2 2.9 1.4 6.9 1.0 -3.3 3.4 -4.1 0.0 3.5 2.2 5.4 1.4 3.7 2.9 -4.6 1.4 -10.5 -0.7 0.4 3.

1 4.9 5.4 8.9 -0.6 5.7 5.6 2.5 17.8 -4.9 7.3 -4.5 8.7 -10.9 -5.5 5.6 6.7 -4.5 4.3 9.3 -3.5 4.1 3.3 -6.1 3.6 1.1 -3.4 1.3 6.4 7.5 9.5 4.3 4.3 3.6 1.4 4.9 2.1 2.8 2.9 -1.9 -2.1 5.8 8.8 10.5 -0.0 3.4 -2.2 5.6 0.2 3.5 4. Table A-6 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 1986 -15.9 8.4 3.7 2.0 1.4 6.2 6.4 -1.6 12.4 1.7 5.6 2.9 2.2 11.0 6.Micro-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.6 2.8 -3.4 2.2 -0.5 7.4 -0.0 22.3 -2.3 2.9 5.0 4.5 6.0 5. Inc.5 7.8 -1.8 1.6 3.4 -1.0 -2.0 3.7 5.4 0.4 12.5 0.1 8.1 2.0 4.2 -5.0 2.2 -4.8 10.4 1.9 2.8 -2.4 4.4 5.0 1.9 3.4 1.4 11.0 1.8 15.7 2.1 5.9 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 -8.8 6.5 0.4 14.8 5.8 2.2 -3.8 6.8 3. 58 .0 19.1 4.4 5.6 6.2 -4.4 3.6 -0.9 6.1 0.8 2.0 -3.9 2.6 5.1 6.1 4.3 -4.4 4. All rights reserved.2 4.1 1.6 4.3 1.1 0.7 1.0 5.5 8.6 -3.4 5.7 7.5 10.3 7.1 -1.9 5.0 -6.2 1.5 21.9 -2.0 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index.9 1.3 16.2 3.2 0.7 1.9 7.2 5.6 6.2 4.8 1.8 1.6 -1.3 1.7 8.6 1.7 6.6 0.1 -2.9 -3.7 3.8 -5.7 3.0 2.7 2.6 11.4 -2.2 4.2 -9.6 -2.0 1.9 3.3 0. © Copyright 2010 Morningstar.1 5.4 2.0 -1.9 7.6 1.1 -5.8 13.6 1.6 0.

3 18. Table A-6 End Date 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Start Date 2001 22.9 *Beta and equity risk premium estimated using the Standard and Poor’s 500 index. All rights reserved.2 6.5 13.2 4.6 10.9 7.7 3.2 7. 59 .0 -0.8 2002 2003 2004 2005 12.9 13. © Copyright 2010 Morningstar.9 3. Inc.Micro-Cap Size Premia* (in percent) 2010 Ibbotson SBBI Valuation Yearbook: Appendix A.3 9.0 14.

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