You have been asked for your advice in selecting a portfolio of assets and have been supplied with the following data: $.$ 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 proportions $(50\%)$ in each of the two component assets.

a$.$ What is the average expected return, $r,$ for each asset over the $3-$year period?

b$.$ What is the standard deviation, $s,$ for each asset's expected return?

c$.$ What is the average expected return, $r_p^{},$ for each of the the portfolios?

d$.$ How would you characterize the correlations of returns of the two assets making up each of the portfolios identified in part $c?$

e$.$ What is the standard deviation of expected returns, $s_p,$ for each portfolio?

f$.$ Which portfolio do you recommend? Why?

a$.$ What is the average expected return, $r^{},$ for each asset over the $3-$year period?

Asset A: $\%($Round to one decimal place.$)$

Asset B: $\%($Round to one decimal place.$)$

Asset C: $\%($Round to one decimal place.$)$

b$.$ What is the standard deviation, $s,$ for each asset's expected return?

Asset A: $\%($Round to two decimal places.$)$

Asset B: $\%($Round to two decimal places.$)$

Asset C: $\%($Round to two decimal places.$)$

c$.$ What is the average expected return, $r_p^{},$ for each of the two portfolios?

Portfolio AB: $\%($Round to one decimal place.$)$

Portfolio AC: $\%($Round to one decimal place.$)$

Data table

$($Click on the icon here in order to copy its contents of the data table below into

a spreadsheet.$)$

d$.$ How would you characterize the correlations of returns of the $2$ assets making up each of the $2$ portfolios identified in part $c?$