Assume you are considering a portfolio containing two assets, Land M. Asset L will represent 43% of the dollar value of the portfolio, and asset M will account for the other 57%. 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, ip, for each of the 6 years. b. Calculate the average expected portfolio return, ro, 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? - X e. Discuss any benefits of diversification achieved through creation of the portfolio. Data table a. The projected portfolio return, in, for 2018 is % (Round to two decimal places.) The projected portfolio return, 1p, for 2019 is %. (Round to two decimal places.) The projected portfolio return, Fe, for 2020 is %. (Round to two 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 14% 17% 2020 17% 17% 2021 18% 13% 2022 16% 13% 2023 20% 11% The projected portfolio return, 1p, for 2021 is (Round to two decimal places.) The projected portfolio return, lp, for 2022 is %. (Round to two decimal places.) The projected portfolio return, ip, for 2023 is %. (Round to two decimal places.) b. The average expected portfolio return, in 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.) Print Done 1 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.) O A. By combining these two positively correlated assets, the overall portfolio risk is reduced. O B. By combining these two negatively correlated assets, the overall portfolio risk is increased. O C. By combining these two negatively correlated assets, the overall portfolio risk is reduced. O D. By combining these two negatively correlated assets, the overall portfolio risk is eliminated