Assume you are considering a portfolio containing Asset $1$ and Asset $2.$ Asset $1$ will represent $39\%$ of the dollar value of the portfolio, and asset $2$ will account for the other $61\%.$ Assume that the

portfolio is rebalanced at the end of each year. The expected returns over the next $6$ years, $2021-2026,$ for each of these assets are summarized in the following table: $.$

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

b$.$ Calculate the average expected portfolio return, $\frac{?}{\text{b}\text{a}\text{r}}(r{)}_p,$ over the $6-$year period.

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

d$.$ Assume that asset $1$ represents $61\%$ of the portfolio and asset $2$ is $39\%.$ Calculate the average expected return and standard deviation of expected portfolio returns over the $6-$year period.

e$.$ Compare your answers in part $d$ to the answers from parts $b$ and $c.$

Data table

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

The expected portfolio return, $r_p,$ for $2022$ is $\%.($Round to two decimal places.$)$

The expected portfolio return, $r_p,$ for $2023$ is

$\%.($Round to two decimal places.$)$

The expected portfolio return, $r_p,$ for $2024$ is

$\%.($Round to two decimal places.$)$

The expected portfolio return, $r_p,$ for $2025$ is

$\%.($Round to two decimal places.$)$

The expected portfolio return, $r_p,$ for $2026$ is

$\%.($Round to two decimal places.$)$

b$.$ The average expected portfolio return, $\frac{?}{\text{b}\text{a}\text{r}}(r{)}_p,$ over the $6-$year period is $\%.($Round to two decimal places.$)$

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

$\%.($Round to three decimal places.$)$

If asset $L$ represents $61\%$ of the portfolio and asset $M39\%,$ the standard deviation of expected portfolio returns, $s_p,$ over the $6-$year period is $\%.($Round to three decimal places.$)$

e$.$ Compare your answers in part $d$ to the answers from parts $b$ and $c.$ Which of the following statements is correct? $($Select the best choice below.$)$