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Assume you are considering a portfolio containing two assets, L and M. Asset L will represent 64% of the dollar value of the portfolio, and asset M will account for the other 36%. Assume that the portfolio is rebalanced at the end of each year. The expected returns over the next 6 years, 2018-2023, for each of these assets are summarized in the following table: a. Calculate the expected portfolio return, ro, for each of the 6 years. b. Calculate the average expected portfolio return, ro over the 6-year period. c. Calculate the standard deviation of expected portfolio returns, Sp, over the 6-year period. d. Assume that asset L represents 36% of the portfolio and asset M 64%. Calculate the average expected return and standard deviation of expected portfolio returns over the 6-year period. e. Compare your answers to the answers from parts b and c. a. The expected portfolio return, lp, for 2018 is 15.88 %. (Round to two decimal places.) The expected portfolio return, lp, for 2019 is 15.72 %. (Round to two decimal places.) The expected portfolio return, rp. for 2020 is 16 %. (Round to two decimal places.) The expected portfolio return , for 2021 is 16.28 %. (Round to two decimal places.) The expected portfolio return, re, for 2022 is 14.20 %. (Round to two decimal places.) The expected portfolio return, ro, for 2023 is 15.48 %. (Round to two decimal places.) b. The average expected portfolio return, fp, over the 6-year period is %. (Round to two decimal places.) on the icon located on the top-right corner of the data table below in order to ts contents into a spreadsheet.) Year 2018 2019 2020 2021 2022 2023 Projected Return Asset L Asset M 13% 21% 15% 17% 16% 16% 17% 15% 16% 11% 18% 11% Print Dono Done 1

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