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 portfoliosone consisting of assets A and B and the other consisting of assets A and Cby investing equal proportions (50%) in each of the two component assets.

f. What would happen if you constructed a portfolio consisting of assets A, B, and C, equally weighted? Would this reduce risk or enhance return?

If you constructed a portfolio consisting of assets A, B, and C, equally weighted, the average expected return,

rp, for Portfolio ABC is ___ (Round to one decimalplace.)

Projected Return

year	asset a	asset b	asset c
2018	13%	17%	13%
2019	15%	15%	15%
2020	17%	13%	17%