Assume you are considering a portfolio containing two​ assets, Land M. Asset L will represent 56 % of the dollar value of the​portfolio, and asset M will account for the other 44 %. Assume thatthe portfolio is rebalanced at the end of each year. The expectedreturns over the next 6​ years, 2018dash2023​, for each of theseassets are summarized in the following​ table:
| Projected Return | |
| Year | Asset L | Asset M |
| 2018 | 14% | 21% |
| 2019 | 14% | 17% |
| 2020 | 16% | 17% |
| 2021 | 18% | 13% |
| 2022 | 16% | 12% |
| 2023 | 18% | 10% |
a. Calculate the expected portfolio​ return, r Subscript p​, foreach of the 6 years. b. Calculate the average expected portfolio​return, r overbar Subscript p​, over the​ 6-year period. c.Calculate the standard deviation of expected portfolio​ returns, sSubscript p​, over the​ 6-year period. d. Assume that asset Lrepresents 44 % of the portfolio and asset M 56 %. Calculate theaverage expected return and standard deviation of expectedportfolio returns over the​ 6-year period. e. Compare your answersto the answers from parts b and c.
