Assume you are considering a portfolio containing Asset $1$ and Asset $2.$ Asset $1$ will represent $61\%$ of the dollar value of the portfolio, and Asset $2$ will account for the other $39\%.$ The projected returns over the next $6$ years, $2021-2026,$ for each of these assets are summarized in the following table: $$

a$.$ Calculate the projected portfolio return, $r_p,$ for each of the $6$ years.

b$.$ Calculate the average expected portfolio return, $r_p,$ over the $6-$year period.

c$.$ Calculate the standard deviation of expected portfolio returns, $s_p,$ over the $6-$year period.

d$.$ How would you characterize the correlation of returns of the assets $1$ and $2?$

e$.$ Discuss any benefits of diversification achieved through creation of the portfolio.

a$.$ The projected portfolio return, $r_p,$ for $2021$ is $\%.($Round to two decimal places.$)$

Data table

$($Click on the icon here in order to copy its contents of the data table below into a spreadsheet.$)$

$\backslash$table$[[,$Projected Return$],[$Year$,$Asset $1,$Asset $2],[2021,-7\%,33\%$