Refer to Problem 5.3. Calculate the average expected return and standard deviation over the six-year period if asset L represents 50% of the portfolio and asset M represents the other 50%. Which form of this portfolio is the best compared to the answers from Problem 5.3?

Data from Problem 5.3

Assume you are considering a portfolio containing two assets, L and M. Asset L will
represent 40% of the dollar value of the portfolio, and asset M will account for the other
60%. The projected returns over the next six years, 2018–2023, for each of these assets
are summarized in the following table.

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Projected Return Year Asset L Asset M 2018 14% 20% 2019 14% 18% 2020 16% 16% 2021 17% 14% 2022 17% 12% 2023 19% 10%