Assume you are considering a portfolio containing two assets, L and M. Asset L will represent 45% of the dollar value of theportfolio, and asset M will account for the other 55%. The projected returns over the next 6 years, 2018 - 2023, for each of these assets are summarized in the following table:

Projected Return
Year	Asset L		Asset M
2018	15%		19%
2019	14%		18%
2020	17%		15%
2021	16%		153%
2022	16%		12%
2023	19%		9%

.

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

b. Calculate the average expected portfolioreturn, rp, 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 portfolio.