You have decided to investigate a number of exchange-traded funds (ETFs) in an attempt to build a

Question:

You have decided to investigate a number of exchange-traded funds (ETFs) in an attempt to build a diversified You believe that the transportation, consumer goods, energy, financials, and health care sectors are the best in which to invest. To begin, you have gathered the monthly total returns for the last five years from some ETFs (IYT, IYK, IYE, IYF, IYH) in each of these sectors.
a. Download the Five ETFs Monthly Returns.xlsx file from the official Web site www.cengagebrain.com/. This contains the data for this, and the next two problems.
b. What are the average monthly returns and standard deviations for each of the ETFs?
c. Which performed best on a risk/return basis during this period? Which was the worst? Use the Sharpe ratio and assume that the risk-free rate averaged 0.165% per month during this period.
d. Create an equally weighted of all the ETFs. Calculate the and standard deviation of this Expected Return
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