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Assume you are considering a portfolio containing Asset 1 and Asset 2 . Asset 1 will represent 5 9 % of the dollar value of

Assume you are considering a portfolio containing Asset 1 and Asset 2. Asset 1 will represent 59% of the dollar value of the portfolio, and Asset 2 will account for the other 41%. The projected returns over the next 6 years, 2021dash2026, for each of these assets are summarized in the following table: LOADING....
a. Calculate the projected portfolio return, r Subscript p, for each of the 6 years.
b. Calculate the average expected portfolio return, r overbar Subscript p, over the6-year period.
c. Calculate the standard deviation of expected portfolio returns, s Subscript p, over the6-year period.
d. How would you characterize the correlation of returns of the assets 1 and2?
e. Discuss any benefits of diversification achieved through creation of the portfolio.

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