Answer all section of question 1&2 using the attached excel spreadsheet. Show all answers on this sheet and your work on paper or on excel file uploaded to Canvas. Calculate the following (600 pts):

	Beta	Expected Return = R
QQQ	1.08	??
SPY	1.01	??
HYG	0.34	??
XBT	0.0	??
US-Treasury	0.0	0.8%
Equity Risk Premium	1.0	5.2%
Expected Market Return	1.0	6.0%

1. Based on two years of historic data provided by Bloomberg, calculate expected annual return, annual standard deviation and Sharpe ratio for each of the four exchange-traded funds (ETFs) portfolios (QQQ Nasdaq 100, SPY S&P 500, HYG iBoxx High Yield Bond, XBT -- Bitcoin). Hint: build up from monthly returns to annual.

2. Calculate the beta, expected annual return, annual standard deviation and Sharpe ratio for an equally weighted portfolio ( QQQ, SPY, HYG, XBT).

3. Do any of the portfolios lie on the security market line? If not are they above or below the line? Correctly draw SML with ETFs for extra points.

4. Construct a portfolio with an expected return consistent with the equity market using iBoxx High Yield ETF (HYG) and US Treasury 10-year bond. Assume you can invest and borrow at the risk-free rate.

5. Explain the difference between the Beta and standard deviation on the equally weighted portfolio.

6. How would you calculate unsystemic risk given the information above?