Question: plz helpPortfolio return and standard deviation Jamie Wong is thinking of building an investment portfolio containing two exchange traded funds ( ETFs ) . Jamie
plz helpPortfolio return and standard deviationJamie Wong is thinking of building an investment portfolio containing two exchange traded fundsETFs Jamie plans to invest $ comma in Vanguard S&P ETF VOO and $ comma in Invesco QQQ Trust QQQ Jamie has decided to analyze some historical returns to get a sense for her portfolio's possible future risk and return. Six years of historical annual returns for each ETF are shown in the following table: LOADING....
aCalculate the portfolio return, r Subscript p for each of the years assuming that is invested in VOO and is invested in QQQ
b Calculate the average annual return for each ETF and the portfolio over the sixyear period.
c Calculate the standard deviation of annual returns for each ETF and the portfolio. How does the portfolio standard deviation compare to the standard deviations of the individual ETFs?
dCalculate the correlation coefficient for the two ETFs. How would you characterize the correlation of returns of the two ETFs?
e Discuss any likely benefits of diversification achieved by Jamie through creation of the portfolio.
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