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Below are the statistics for the Vanguard Total Stock Market Index Fund ETF (VTI) and the Vanguard Total Bond Market Index Fund Investor Shares (VBMFX)
Below are the statistics for the Vanguard Total Stock Market Index Fund ETF (VTI) and the Vanguard Total Bond Market Index Fund Investor Shares (VBMFX) continuously compounded semiannual returns between the second half of 2001 and the first half of 2021. Using the information there, answer Questions 1 through 4. Expected return Variance Correlation VTI VBMFX 4.351% 2.054% 0.01201 0.00059 -0.28653 Question 3 Calculate the expected return and its standard deviation of the minimum variance portfolio of VTI and VBMFX. Question 4 Calculate the expected return and its standard deviation of the optimal risky portfolio of VTI and VBMFX if the semiannual risk-free rate is 0.04%
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