Below are the statistics for the Vanguard Total Stock Market Index Fund ETF (VTI) and...
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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) continuously compounded semiannual returns between the second half of 2001 and the first half of 2021.
VTI and VBMFX
Expected Return: VTI - 4.351% and VBMFX - 2.054%
Variance: VTI - 0.01201 and VBMFX - 0.00059
Correlation: -0.28653
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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