The following table presents the unaudited pro forma combined results of operations of PNC and National City as if the acquisition had been completed as of the beginning of 2008 or 2007.
The unaudited pro forma results of operations are presented solely for information purposes and are not intended to represent or be indicative of the consolidated results of operations that PNC would have reported had this transaction been completed as of the dates and for the periods presented, nor are they necessarily indicative of future results.
Unaudited Pro Forma Combined Results
## Table 0 ##
The unaudited pro forma combined results of operations include the effect of the net amortization/accretion of purchase accounting fair value adjustments based on asset and liability valuations as of the acquisition date.
They also reflect the receipt of $7.6 billion from the sale of preferred securities and issuance of a warrant to purchase 16.9 million shares of PNC common stock under the TARP Capital Purchase Program (See Note 19 Shareholders’ Equity for additional information).
During 2008, National City recorded $2.4 billion of nonrecurring charges for goodwill impairments which are included in these pro forma results.
These adjustments have been consistently applied to each period presented in the table above.
STERLING FINANCIAL CORPORATION On April 4, 2008, we acquired Lancaster, Pennsylvania-based Sterling Financial Corporation (“Sterling”).
Sterling shareholders received an aggregate of approximately 4.6 million shares of PNC common stock and $224 million of cash.
J. J.
B.  HILLIARD, W. L.  LYONS, LLC On March 31, 2008, we sold J. J.
B.  Hilliard, W. L.  Lyons, LLC (“Hilliard Lyons”), a Louisville, Kentucky-based whollyowned subsidiary of PNC and a full-service brokerage and financial services provider, to Houchens Industries, Inc.  We recognized an after-tax gain of $23 million in the first quarter of 2008 in connection with this divestiture.2007 ALBRIDGE SOLUTIONS INC.  On December 7, 2007, we acquired Albridge Solutions Inc.  (“Albridge”), a Lawrenceville, New Jersey-based provider of portfolio accounting and enterprise wealth management services.
Albridge extends PNC Global Investment Servicing’s capabilities into the delivery of knowledge-based information services through its relationships with financial institutions and financial advisors.
COATES ANALYTICS, LP Also on December 7, 2007, we acquired Coates Analytics, LP (“Coates Analytics”), a Chadds Ford, Pennsylvania-based provider of web-based analytic tools that help asset managers identify wholesaler territories and financial advisor targets, promote products in the marketplace and strengthen competitive intelligence.
Coates Analytics complements PNC Global Investment Servicing’s business strategy.
YARDVILLE NATIONAL BANCORP On October 26, 2007 we acquired Hamilton, New Jerseybased Yardville National Bancorp (“Yardville”).
Yardville shareholders received an aggregate of approximately 3.4 million shares of PNC common stock and $156 million in cash.
Total consideration paid was approximately $399 million in stock and cash.
ARCS COMMERCIAL MORTGAGE CO. , L. P.  On July 2, 2007, we acquired ARCS Commercial Mortgage Co. , L. P.  (“ARCS”), a Calabasas Hills, California-based lender with 10 origination offices in the United States.
ARCS has been a leading originator and servicer of agency multifamily loans for the past decade.
MERCANTILE BANKSHARES CORPORATION Effective March 2, 2007, we acquired Mercantile Bankshares Corporation (“Mercantile”).
Mercantile shareholders received an aggregate of approximately 53 million shares of PNC common stock and $2.1 billion in cash.
Total consideration paid was approximately $5.9 billion in stock and cash.2006 BLACKROCK/MLIM TRANSACTION On September 29, 2006, Merrill Lynch contributed its investment management business (“MLIM”) to BlackRock in exchange for 65 million shares of newly issued BlackRock common and preferred stock.
BlackRock accounted for the MLIM transaction under the purchase method of accounting.
Immediately following the closing, PNC continued to own 44 million shares of BlackRock common stock representing an ownership interest of 34% of the combined company (as compared with 69% immediately prior to the closing).
We also recorded a liability at September 30, 2006 for deferred taxes of $.9 billion, related to the excess of the book value over the tax basis of our investment in BlackRock, and a liability of $.6 billion related to our obligation to provide shares of BlackRock common stock to help fund certain BlackRock long-term incentive plan (“LTIP”) programs.
The Plan’s specific investment objective is to meet or exceed the investment policy benchmark over the long term.
The investment policy benchmark compares actual performance to a weighted market index, and measures the contribution of active investment management and policy implementation.
This investment objective is expected to be achieved over the long term (one or more market cycles) and is measured over rolling five-year periods.
Total return calculations are timeweighted and are net of investment-related fees and expenses.
The asset strategy allocations for the Trust at the end of 2008 and 2007, and the target allocation range, by asset category, are as follows:
## Table 1 ##
The asset category represents the allocation of Plan assets in accordance with the investment objective of each of the Plan’s investment managers.
Certain domestic equity investment managers utilize derivatives and fixed income securities as described in their Investment Management Agreements to achieve their investment objective under the Investment Policy Statement.
Other investment managers may invest in eligible securities outside of their assigned asset category to meet their investment objectives.
The actual percentage of the fair value of total plan assets held as of December 31, 2008 for equity securities, fixed income securities, real estate and all other assets are 32%, 55%, 0%, and 13%, respectively.
We believe that, over the long term, asset allocation is the single greatest determinant of risk.
Asset allocation will deviate from the target percentages due to market movement, cash flows, and investment manager performance.
Material deviations from the asset allocation targets can alter the expected return and risk of the Trust.
On the other hand, frequent rebalancing to the asset allocation targets may result in significant transaction costs, which can impair the Trust’s ability to meet its investment objective.
Accordingly, the Trust portfolio is periodically rebalanced to maintain asset allocation within the target ranges described above.
In addition to being diversified across asset classes, the Trust is diversified within each asset class.
Secondary diversification provides a reasonable basis for the expectation that no single security or class of securities will have a disproportionate impact on the total risk and return of the Trust.
The Committee selects investment managers for the Trust based on the contributions that their respective investment styles and processes are expected to make to the investment performance of the overall portfolio.
The managers’ Investment Objectives and Guidelines, which are a part of each manager’s Investment Management Agreement, document performance expectations and each manager’s role in the portfolio.
The Committee uses the Investment Objectives and Guidelines to establish, guide, control and measure the strategy and performance for each manager.
The purpose of investment manager guidelines is to: ?
Establish the investment objective and performance standards for each manager, ?
Provide the manager with the capability to evaluate the risks of all financial instruments or other assets in which the manager’s account is invested, and ?
Prevent the manager from exposing its account to excessive levels of risk, undesired or inappropriate risk, or disproportionate concentration of risk.
The guidelines also indicate which investments and strategies the manager is permitted to use to achieve its performance objectives, and which investments and strategies it is prohibited from using.
Where public market investment strategies may include the use of derivatives and/or currency management, language is incorporated in the managers’ guidelines to define allowable and prohibited transactions and/or strategies.
Derivatives are typically employed by investment managers to modify risk/ return characteristics of their portfolio(s), implement asset allocation changes in a cost-effective manner, or reduce transaction costs.
Under the managers’ investment guidelines, derivatives may not be used solely for speculation or leverage.
Derivatives are used only in circumstances where they offer the most efficient economic means of improving the risk/ reward profile of the portfolio.
BlackRock, Global Investment Servicing and our Retail Banking business segments receive compensation for providing investment management, trustee and custodial services for the majority of the Trust portfolio.
Compensation for such services is paid by PNC.
Non-affiliate service providers for the Trust are compensated from plan assets.
NATIONAL CITY PENSION PLAN ASSETS Assets related to the pension plan investments of the former National City qualified pension plan are held in trust.
The trustee is National City Bank.
The Trust is exempt from tax pursuant to section 501(a) of the Code.
The plan is qualified under section 401(a) of the Code.
Plan assets consist primarily of listed domestic and international equity securities and US government, agency, and corporate debt securities and real estate investments.
Plan assets do include common stock of PNC as discussed below.
SHORT-TERM BORROWINGS Federal funds purchased include overnight borrowings and term federal funds, which are payable at maturity.
## Table 2 ##
SELECTED LOAN MATURITIES AND INTEREST SENSITIVITY
## Table 3 ##
At December 31, 2008, we had no pay-fixed interest rate swaps designated to commercial loans as part of fair value hedge strategies.
At December 31, 2008, $5.6 billion notional amount of receive-fixed interest rate swaps were designated as part of cash flow hedging strategies that converted the floating rate (1 month LIBOR) on the underlying commercial loans to a fixed rate as part of risk management strategies.
TIME DEPOSITS OF $100,000 OR MORE Time deposits in foreign offices totaled $4.0 billion at December 31, 2008, substantially all of which are in denominations of $100,000 or more.
The following table sets forth maturities of domestic time deposits of $100,000 or more:
## Table 4 ##
COMMON STOCK PRICES/DIVIDENDS DECLARED The table below sets forth by quarter the range of high and low sale and quarter-end closing prices for our common stock and the cash dividends we declared per common share.
## Table 5 ##
On March 1, 2009, the Board decided to reduce PNC’s quarterly common stock dividend from $0.66 to $0.10 per share.
The next dividend is expected to be declared in early April 2009.
Shareowner Return Performance Graph The following Performance Graph and related information shall not be deemed “soliciting material” or to be “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that the Company specifically incorporates such information by reference into such filing.
The following graph shows a five-year comparison of cumulative total shareowners’ returns for our class B common stock, the S&P 500 Index, and the Dow Jones Transportation Average.
The comparison of the total cumulative return on investment, which is the change in the quarterly stock price plus reinvested dividends for each of the quarterly periods, assumes that $100 was invested on December 31, 2002 in the S&P 500 Index, the Dow Jones Transportation Average, and the class B common stock of United Parcel Service, Inc.
Comparison of Five Year Cumulative Total Return
## Table 6 ##
Securities Authorized for Issuance under Equity Compensation Plans The following table provides information as of December 31, 2007 regarding compensation plans under which our Class A common stock is authorized for issuance.
These plans do not authorize the issuance of our Class B common stock.

<table><tr><td>(In millions, except per share data)</td><td>2008</td><td>2007</td></tr><tr><td>Total revenue</td><td>$15,397</td><td>$16,709</td></tr><tr><td>Net income (loss)</td><td>-3,742</td><td>3,695</td></tr><tr><td>Per share data</td><td></td><td></td></tr><tr><td>Earnings (loss) – basic</td><td>$-9.58</td><td>$7.66</td></tr><tr><td>Earnings (loss) – diluted</td><td>-9.60</td><td>7.55</td></tr><tr><td>Average common shares outstanding – basic</td><td>439</td><td>426</td></tr><tr><td>Average common shares outstanding – diluted</td><td>439</td><td>431</td></tr></table>
<table><tr><td></td><td>TargetAllocationRange</td><td colspan="2">Percentage of Plan Assets by Strategy at December 31</td></tr><tr><td> PNC Pension Plan</td><td></td><td>2008</td><td>2007</td></tr><tr><td> Asset Category </td><td></td><td></td><td></td></tr><tr><td>Equity securities</td><td>49-69%</td><td>58%</td><td>62%</td></tr><tr><td>Fixed income securities</td><td>32-39%</td><td>39%</td><td>34%</td></tr><tr><td>Real estate</td><td>4-6%</td><td>3%</td><td>4%</td></tr><tr><td>Other</td><td>0-5%</td><td>—</td><td>—</td></tr><tr><td>Total</td><td></td><td>100%</td><td>100%</td></tr></table>
<table><tr><td></td><td colspan="2">2008</td><td colspan="2">2007</td><td colspan="2">2006</td></tr><tr><td>Dollars in millions</td><td>Amount</td><td>Rate</td><td>Amount</td><td>Rate</td><td>Amount</td><td>Rate</td></tr><tr><td>Federal funds purchased</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Year-end balance</td><td>$128</td><td>.01%</td><td>$7,037</td><td>3.17%</td><td>$2,711</td><td>5.24%</td></tr><tr><td>Average during year</td><td>4,518</td><td>2.15</td><td>5,533</td><td>5.13</td><td>3,081</td><td>5.10</td></tr><tr><td>Maximum month-end balance during year</td><td>7,343</td><td></td><td>8,798</td><td></td><td>4,226</td><td></td></tr></table>
<table><tr><td>December 31, 2008 – in millions</td><td>Certificatesof Deposit</td></tr><tr><td>Three months or less</td><td>$6,177</td></tr><tr><td>Over three through six months</td><td>1,904</td></tr><tr><td>Over six through twelve months</td><td>6,146</td></tr><tr><td>Over twelve months</td><td>8,629</td></tr><tr><td>Total</td><td>$22,856</td></tr></table>
<table><tr><td>December 31, 2008In millions</td><td>1 Yearor Less</td><td>1 Through5 Years</td><td>After 5Years</td><td>GrossLoans</td></tr><tr><td>Commercial</td><td>$22,866</td><td>$36,425</td><td>$8,028</td><td>$67,319</td></tr><tr><td>Real estate projects</td><td>9,134</td><td>7,048</td><td>994</td><td>17,176</td></tr><tr><td>Total</td><td>$32,000</td><td>$43,473</td><td>$9,022</td><td>$84,495</td></tr><tr><td>Loans with Predetermined rate</td><td>$3,408</td><td>$7,077</td><td>$3,315</td><td>$13,800</td></tr><tr><td>Floating or adjustable rate</td><td>28,592</td><td>36,396</td><td>5,707</td><td>70,695</td></tr><tr><td>Total</td><td>$32,000</td><td>$43,473</td><td>$9,022</td><td>$84,495</td></tr></table>
<table><tr><td></td><td>High</td><td>Low</td><td>Close</td><td>CashDividends Declared</td></tr><tr><td> 2008 Quarter</td><td></td><td></td><td></td><td></td></tr><tr><td> First</td><td>$71.20</td><td>$53.10</td><td>$65.57</td><td>$.63</td></tr><tr><td> Second</td><td>73.00</td><td>55.22</td><td>57.10</td><td>.66</td></tr><tr><td> Third</td><td>87.99</td><td>49.01</td><td>74.70</td><td>.66</td></tr><tr><td> Fourth</td><td>80.00</td><td>39.09</td><td>49.00</td><td>.66</td></tr><tr><td> Total</td><td></td><td></td><td></td><td>$2.61</td></tr><tr><td>2007 Quarter</td><td></td><td></td><td></td><td></td></tr><tr><td>First</td><td>$76.41</td><td>$68.60</td><td>$71.97</td><td>$.55</td></tr><tr><td>Second</td><td>76.15</td><td>70.31</td><td>71.58</td><td>.63</td></tr><tr><td>Third</td><td>75.99</td><td>64.00</td><td>68.10</td><td>.63</td></tr><tr><td>Fourth</td><td>74.56</td><td>63.54</td><td>65.65</td><td>.63</td></tr><tr><td>Total</td><td></td><td></td><td></td><td>$2.44</td></tr></table>
<table><tr><td></td><td>12/31/02</td><td>12/31/03</td><td>12/31/04</td><td>12/31/05</td><td>12/31/06</td><td>12/31/07</td></tr><tr><td>United Parcel Service, Inc.</td><td>$100.00</td><td>$119.89</td><td>$139.55</td><td>$124.88</td><td>$127.08</td><td>$122.64</td></tr><tr><td>S&P 500 Index</td><td>$100.00</td><td>$128.68</td><td>$142.68</td><td>$149.69</td><td>$173.33</td><td>$182.85</td></tr><tr><td>Dow Jones Transportation Average</td><td>$100.00</td><td>$131.84</td><td>$168.39</td><td>$188.00</td><td>$206.46</td><td>$209.40</td></tr></table>

Question: what is the rate of return of an investment in ups from 2003 to 2004?
Answer: 0.16398