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(20 points) Jane Warren is considering building a portfolio containing two assets, L and M. Asset L will represent 40% of the dollar value of the portfolio, and asset M will account for the other 60%. The expected returns over the next 6 years, 2021-2026, for each of these assets, are shown in the following table. (See an Excel example posted under HW4 on Canvas.) Expected Return Year Asset L Asset M 2021 14% 20% 2022 14 18 2023 16 16 2024 17 14 2025 17 12 2026 19 10 a. Calculate the expected portfolio return, kp, for each of the 6 years. b. Calculate the expected value of portfolio return, k,, over the 6-year period. c. Calculate the standard deviation of expected portfolio returns, O.,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. (20 points) Jane Warren is considering building a portfolio containing two assets, L and M. Asset L will represent 40% of the dollar value of the portfolio, and asset M will account for the other 60%. The expected returns over the next 6 years, 2021-2026, for each of these assets, are shown in the following table. (See an Excel example posted under HW4 on Canvas.) Expected Return Year Asset L Asset M 2021 14% 20% 2022 14 18 2023 16 16 2024 17 14 2025 17 12 2026 19 10 a. Calculate the expected portfolio return, kp, for each of the 6 years. b. Calculate the expected value of portfolio return, k,, over the 6-year period. c. Calculate the standard deviation of expected portfolio returns, O.,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