1.

Do the results show that the 12M returns for the securities in the portfolio are: Ishares Global Tech ETF (17.5% allocation): 8.77%, NASDAQ 100 (22.1% allocation): 6.36%, iShares 7-10 Year Treasury Bond ETF (28.5% allocation): 6.60%, Vanguard Real Estate ETF (8.9% allocation): -3.13%, SPDR Gold Shares (23% allocation): 5.05%, and the portfolio (100% allocation): 6.61%. ?

The 18M returns for the securities in the portfolio are: Ishares Global Tech ETF (17.5% allocation): 18.77%, NASDAQ 100 (22.1% allocation): 18.50%, iShares 7-10 Year Treasury Bond ETF (28.5% allocation): 14.82%, Vanguard Real Estate ETF (8.9% allocation): -0.17%, SPDR Gold Shares (23% allocation): 11.42%, and the portfolio (100% allocation): 15.37%. ?

The 24M returns for the securities in the portfolio are: Ishares Global Tech ETF (17.5% allocation): 22.67%, NASDAQ 100 (22.1% allocation): 25.10%, iShares 7-10 Year Treasury Bond ETF (28.5% allocation): 16.26%, Vanguard Real Estate ETF (8.9% allocation): 5.41%, SPDR Gold Shares (23% allocation): 11.40%, and the portfolio (100% allocation): 18.91%.?

Question 2 

There's a positive correlation in all the assets in the recent 12 months.The results show that the correlations between the assets in the portfolio are relatively low. The highest correlation is between the iShares 7-10 Year Treasury Bond ETF and the SPDR Gold Shares (0.51). This indicates that these two assets tend to move in the same direction.?

Question 3 

Do the results show that the 12M sigma (risk) for the securities in the portfolio are: Ishares Global Tech ETF (17.5% allocation): 12.81%, NASDAQ 100 (22.1% allocation): 14.02%, iShares 7-10 Year Treasury Bond ETF (28.5% allocation): 3.76%, Vanguard Real Estate ETF (8.9% allocation): 11.92%, SPDR Gold Shares (23% allocation): 6.48%, and the portfolio (100% allocation): 9.84%.?

Question 4

Based on the returns and risk analysis, it appears that the iShares 7-10 Year Treasury Bond ETF (IEF) is the least risky asset with the highest return over the last 12M, 18M, and 24 M. Therefore, it would make sense to sell some of the assets with higher risk and lower return, such as the NASDAQ 100 (QQQ) and the Vanguard Real Estate ETF (VNQ) and buy more of the iShares 7-10 Year Treasury Bond ETF (IEF).?

 

Question 5

After rebalancing the portfolio, the expected risk and return will change as the portfolio will now be invested more heavily in the lower risk, higher return iShares 7-10 Year Treasury Bond ETF (IEF). ?

Answer rating: 100% (QA)

Question 1 The 12M 18M and 24M returns for the securities in the portfolio are provided The portfoli... View the full answer