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04) You are planning to construct a portfolio made up of a broad market index (S&P 500) and a cryptocurrency. Four major cryptocurrencies are available

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04) You are planning to construct a portfolio made up of a broad market index (S&P 500) and a cryptocurrency. Four major cryptocurrencies are available in the market and they are BTC (Bitcoin), ETH (Ether), XRP (Ripple), and LTC (Litecoin). Use Table 1 and Table 2 to answer the following questions: a. Which of these are suitable for adding to the index for diversification purposes and why? (10 points) b. If they all are mutually exclusive (only one can be selected) then which one will you select and why? (10 points) References Mailings Review View Help Search Table 1 Covariance BTC -0.00832 -0.00459 XRP -0.005 LTC -0.0064 S&P 500 Table 2 Std. Deviation of Returns S&P 500 BTC ETH XRP LTC

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