$-0\mathrm{.}32.$

REITs is $0\mathrm{.}74$ and the correlation between core bonds and REITs is $-0\mathrm{.}04.($Past performance is no guarantee of future results.$)$

You are considering portfolio investments that are composed of an S&P $500$ index fund and REITs as well as portfolio investments composed of a core bonds fund and REITs.

S&P $500$ and REITs $,333\mathrm{.}486$

core bonds and REITs

expected return

$\%($Round to $3$ decimal places$)$

standard deviation

$\%($Round to $2$ decimal places$)$

expected return

$\%($Round to $3$ decimal places$)$

standard deviation

$\%($Round to $2$ decimal places$)$

$($e$)$ Which of the portfolios in parts $($b$),($c$),$ and $($d$)$ would you recommend to an aggressive investor? Why?

The portfolio consisting of

is recommended for the aggressive investor because of its

return and moderate amount of risk.

Which would you recommend to a conservative investor? Why?

The portfolio consisting of $80\%$ core bonds and $20\%$ REITs $$ is recommended to the conservative investor because of its moderate return and

risk.