Assume you are considering a portfolio containing two assets, Land M. Asset L will represent 40% of the dollar value of the portfolio, and asset M will account for the other 60%. 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, lp, for each of the 6 years. b. Calculate the average expected portfolio return, lp, 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. a. The projected portfolio return, ip, for 2018 is %. (Round to two decimal places.) The projected portfolio return, io, for 2019 is%. (Round to two decimal places.) Data Table The projected portfolio return, 1p, for 2020 is %. (Round to two decimal places.) 0 The projected portfolio return, Fe, for 2021 is %. (Round to two decimal places.) The projected portfolio return, Te, for 2022 is %. (Round to two decimal places.) The projected portfolio return, Fe, for 2023 is %. (Round to two decimal places.) b. The average expected portfolio return, 1 n, 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 % ound to decimal places.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Projected Return Year Asset L Asset M 2018 15% 21% 2019 13% 18% 2020 15% 16% 2021 16% 13% 2022 17% 13% 2023 20% 10% d. How would you characterize the correlation of returns of the two assets L and M? The assets are V correlated. (Select from the drop-down menu.) e. Discuss any benefits of diversification achieved through creation of the portfolio. (Select the best choice below.) Print Print Done O A. By combining these two negatively correlated assets, the overall portfolio risk is reduced. O B. By combining these two negatively correlated assets, the overall portfolio risk is eliminated. O C. By combining these two negatively correlated assets, the overall portfolio risk is increased. OD. By combining these two positively correlated assets, the overall portfolio risk is reduced. James. Melissa M