Jennifer has decided to increase the level of diversification in her portfolio by buying four exchange traded funds (ETFs). The selected ETFs are the following: SPDR Global Dow ETF (DGT), Vanguard Utilities Index Fund ETF Shares (VPU), iShares Core U.S. Aggregate Bond ETF (AGG) and the SPDR Gold Shares (GLD). You can download from Yahoo! Finance (http://finance.yahoo.com) the closing monthly prices from May 2012 to June 2017 using the tickers provided above.

a) Calculate the returns for all of the above ETFs in each month during the five-year period.

b) Determine the average monthly return and standard deviation of monthly returns for each ETF.

c) Create a correlation matrix and a covariance matrix using the formulas.