You have been asked for your advice in selecting a portfolio of assets and have been given the following data.

Expected Returns (%)

Year Asset A Asset B Asset C

2019 12 16 12

2020 14 14 14

2021 16 12 16

You have been told that you can create two portfolios one consisting of assets A and B and the other consisting of A and C- by investing equal proportions (50%) in each of the two components assets. Based on your analysis, answer the following questions.

(a) What is the expected return for each of the two portfolios? (2 Marks)

(b) What is the standard deviation for each portfolio? (2 Marks)