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a . Calculate the portfolio return, r p , for each of the 6 years assuming that 2 0 % is invested in VOO and
a Calculate the portfolio return, 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?
d Calculate 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.
a The portfolio return for year is Round to two decimal places.
The portfolio return for year is Round to two decimal places.
The portfolio return for year is Round to two decimal places.
The portfolio return for year is Round to two decimal places.
The portfolio return for year is Round to two decimal places.
The portfolio return for year is Round to two decimal places.
b The average return of VOO over the year period is Round to two decimal places.
The average return of over the year period is Round to two decimal places.
The average return of the portfolio over the year period is Round to two decimal places.
c The standard deviation of VOO returns over the year period is Round to two decimal places.
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