Assume you are considering a portfolio containing two assets, L and M. Asset L will represent 35% of the dollar value of the portfolio, and asset M will account for the other 65%. The projected returns over the next 6 years, 2018-2023, for each of these assets are summarized in the following table: a. Calculate the projected portfolio return, p, for each of the 6 years. b. Calculate the average expected portfolio return, 'p, over the 6-year period. C. Calculate the standard deviation of expected portfolio returns, Sp, over the 6-year period. d. How would you characterize the correlation of returns of the two assets L and M? e. Discuss any benefits of diversification achieved through creation of the bortfolio. a. The projected portfolio return, Tp. for 2018 is %. (Round to two decimal places.) The projected portfolio return, for 2019 is %. (Round to two decimal places.) O The projected portfolio return, p, for 2020 is %. (Round to two decimal places.) The projected portfolio return, Tp. for 2021 is %. (Round to two decimal places.) The projected portfolio return, Tp. for 2022 is %. (Round to two decimal places.) The projected portfolio return, ip, for 2023 is %. (Round to two decimal places.) The The projected portfolio return, ip, for 2023 is %. (Round to two decimal places.) b. The average expected portfolio return, 'p, over the 6-year period is %. (Round to two decimal places.) c. The standard deviation of expected portfolio returns, Sp, over the 6-year period is %. (Round to three decimal places.) d. How would you characterize the correlation of returns of the two assets L and M? The assets are correlated. (Select from the drop-down menu.) e. Discuss any benefits of diversification achieved through creation of the portfolio. (Select the best choice below.) e. Discuss any benefits of diversification achieved through creation of the portfolio. (Select the best choice b A. By combining these two negatively correlated assets, the overall portfolio risk is reduced. B. By combining these two positively correlated assets, the overall portfolio risk is reduced. C. By combining these two negatively correlated assets, the overall portfolio risk is increased. D. By combining these two negatively correlated assets, the overall portfolio risk is eliminated. Year 2018 2019 2020 2021 2022 2023 Projected Return Asset L Asset M 15% 19% 15% 18% 16% 17% 18% 14% 18% 13% 19% 10% Print Done