HELP ALL ASAP PLEASE
Data Table Click on the icon here in order to copy the contents of the data table below to a spreadsheet.) Expected return Stock L Stock M Year 2013 15% 16% 2014 2015 22% 20% 18% 16% 2016 17% 19% 21% 22% 2017 14% 2018 12% Print Done Toteu. en achieved by Jamie through creation of the portfolio. (Select the best answer below.) correlated assets increases overall portfolio risk. correlated assets increases overall portfolio risk. Correlated assets reduces overall portfolio risk. correlated assets reduces overall portfolio risk. Portfolio return and standard deviation Personal Finance Problem Jamie Wong is thinking of building an investment portfolio containing two stocks, Land M Stock L will represent 55% of the dollar value of the portfolio and stock Mwill account for the other 45%. The historical returns over the next 6 years, 2013 - 2018, for each of these stocks are shown in the following table a. Calculate the actual portfolio return. rfor each of the years b. Calculate the expected value of portfolio returns in over the 5-year period. e. Calculate the standard deviation of expected portfolio returns over the 6-year period d. How would you characterize the correlation of returns of the two stocks Land M? e. Discuss any benefits of diversification achieved by Jamie through creation of the portfolio a. The actual portfolio return for year 2013 is % (Round to two decimal places) The actual portfolio return for year 2014 81% (Round to two decimal places The actual portfolio return for year 2015 is % (Round to two decimal places.) The actual portfolio return for year 2016 is 0% (Round to two decimal places.) The actual portfolio return for year 2017 is % (Round to two decimal places) The actual portfolio retum for year 2018 is % (Round to two decimal places) b. The expected value of portfolio returns. To over the 6-year period is 1% (Round to two decimal places.) c. The standard deviation of expected portfolio returns over the 5-year period is % Round to two decimal places.) d. How would you characterize the correlation of returns of the two stocks L and M? (Select the best answer below) O A The assets are positively correlated OB. The assets are negatively correlated .. Discuss any benefits of diversification achieved by Jamie through creation of the portfolio. (Select the best answer below.) O A Combining these two positively correlated assets increases overall portfolio risk. OB Combining these two negatively correlated assets increases overall portfolio risk OC. Combining these two positively correlated assets reduces overall portfolio risk OD. Combining these two negatively correlated assets reduces overall portfolio risk