Ford Motor 401k (SSIP) Plan PSDS Scan 12-31-2011

The Ford Motor 401k scan this year includes in the 3D scan image STD and PSR data computed using the covariance matrix for the 12 investment options in the scan. This is a new capability and TechNote 2012-1 describes the math required to account for the cross correlation among investment options when computing each scan portfolio's standard deviation and Sharpe ratio. Normally the STD and PSR data posted assume the investment options are independent. It was a lot of work to do this. I hope to be able to do this more often but I doubt I can do it for every 401k Plan. The 2D scan image does not include the covariance matrix in the STD shown and are lower than the 3D STD data. The Ford 401k Plan made a few changes last year and company stock was down a bit in 2011.