Projected Return    Â
Year  Asset A  Asset B  AssetC
2018Â Â 13%Â Â 15%Â Â 11%
2019Â Â 15%Â Â 13%Â Â 13%
2020Â Â 17%Â Â 11%Â Â 15%
You have been asked for your advice in selecting a portfolio ofassets and have been supplied with the following​ data: LOADING....You have been told that you can create two portfolioslong dashoneconsisting of assets A and B and the other consisting of assets Aand Clong dashby investing equal proportions ​(50 %​) in each ofthe two component assets. a. What is the average expected​ return,r overbar​, for each asset over the​ 3-year period? b. What is thestandard​ deviation, s​, for each​ asset's expected​ return? c.What is the average expected​ return, r overbar Subscript p​, foreach of the the​ portfolios? d. How would you characterize thecorrelations of returns of the two assets making up each of theportfolios identified in part c​? e. What is the standard deviationof expected​ returns, s Subscript p comma for each​ portfolio? f.Which portfolio do you​ recommend? Why?
