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Business, 21.10.2020 16:01 jivsf

I am interested in building a portfolio of stocks and bonds... a very convenient way is to invest in two ETFs (Exchange Traded Funds). Let’s we choose VTI and VGLT as the ETFs. Build the efficient frontier combining these two ETFs. What allocation gives you the best Sharpe Ratio? If you decide on a 50-50 allocation, what is the probability you will get a return larger than 1% next month? (To make things a little easier, use monthly returns in the last 5 years.)

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