Question: based on the attached, analyze the assets, explaining why the concepts of correlation and diversification are important to portfolio construction. Also, discuss the importance of

based on the attached, analyze the assets, explaining why the concepts of correlation and diversification are important to portfolio construction. Also, discuss the importance of assessing expected returns on a risk-adjusted basis.

+ Type Asset Expected Return (%) Standard Deviation (%) ETF A, Broad market equity Vanguard Total Stock Market ETF 10 18 (VTI) ETF B, Bond-focused ETF Vanguard Total Bond Market ETF 5 4 (BND) Bond A, Government Bond ETF iShares 20+ Year Treasury Bond ETF 4 5 (TLT) Bond B, Corporate Bond ETF iShares iBoxx $ Investment Grade 6 7 Corporate Bond ETF (LQD) Stock A, Apple Inc. (AAPL) 12 20 High-growth tech Stock B, Procter & Gamble (PG) 8 15 Consumer goods stock Mutual Fund A, Index Fund Vanguard 500 Index Fund (VFIAX) 12 REIT Realty Income Corporation (O) 10 Commodities Fund Invesco DB Commodity Index 12 Tracking Fund (DBC)

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