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

	Expected Return
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 portfoliosone consisting of assets A and B and the other consisting of assets A and Cby investing equal proportions (50%) in each of the two component assets.

a.What is the expected return for each asset over the 3-year period?

b.What is the standard deviation for each asset's return?

c.What is the expected return for each of the two portfolios?

d.What is the standard deviation for each portfolio?

e.Which portfolio do you recommend? Why?