ST 7-2 Portfolio analysis You have been asked for your advice in selecting a portfolio f assets and have been supplied with the following data Expected return Asset A Asset B Asset C 2008 2009 2010 12% 14 16 16% 14 12 12% 16 You have been told that you can create two portfolios-one consisting of assets A and B and the other consisting of assets A and C-by investing equal propor tions i.e., 50%) in each of the two component assets. a. What is the expected return for each asset over the 3-year period? b. What is the standard deviation for each asset's return? c. What is the expected return for each portfolio per year and on average? d. How would you characterize the correlations of re of the two assets making up each of the two portfolios identified in c? e. What is the standard deviation for each portfolio? f. Which portfolio do you recommend? Why