Question: Consider the following information: Asset Expected Return Std. Dev. of Return Correlation with Energy ETF Energy ETF 6.8% 21.2 % 1.0 Technology ETF 12.4% 37.9

Consider the following information:

Asset Expected Return Std. Dev. of Return Correlation with

Energy ETF

Energy ETF 6.8% 21.2 % 1.0

Technology ETF 12.4% 37.9 % 0.34

(a) Find the expected return for a portfolio that is 70% invested in the energy ETF and 30% in the technology ETF.

(b) Find the standard deviation for a portfolio that is 70% invested in the energy ETF and 30% in the technology ETF.

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