Assume you are considering a portfolio containing Asset $1$ and Asset $2.$ Asset $1$ will represent $60\%$ of the dollar value of the$$ portfolio, and Asset $2$ will account for the other $40\%.$ The projected returns over the next $6$ years, $2021$dash$2026,$ for each of these assets are summarized in the following$$ 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 the$6-$year period.

c$.$ Calculate the standard deviation of expected portfolio$$ returns, s Subscript 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.

Projected Return

Year Asset $1$ Asset $2$

$2021-7\%32\%$

$202215\%5\%$

$202326\%-8\%$

$20243\%20\%$

$2025-9\%34\%$

$202632\%-18\%$