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Need C. Portfolio return and standard deviation Personal Finance Problem Jamie Wong is thinking of building an investment portfolio containing two stocks, Land M. Stock

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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 25% of the dollar value of the portfolio, and stock M will account for the other 75%. 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, rp, for each of the 6 years. b. Calculate the expected value of portfolio returns, Pp, over the 6-year period. c. Calculate the standard deviation of expected portfolio returns, or, over the 6-year period. d. How would you characterize the correlation of returns of the two stocks L and M? e. Discuss any benefits of diversification achieved by Jamie through creation of the portfolio a. The actual portfolio return for year 2013 is 20.75 %. (Round to two decimal places.) The actual portfolio return for year 2014 is 20.50 %. (Round to two decimal places.) Data Table . X The actual portfolio return for year 2015 is 20.25%. (Round to two decimal places.) The actual portfolio return for year 2016 is 19.50 %. (Round to two decimal places.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) The actual portfolio return for year 2017 is 19.00 %. (Round to two decimal places.) The actual portfolio return for year 2018 is 18.75 %. (Round to two decimal places.) b. The expected value of portfolio returns, lp, over the 6-year period is 19.79 %. (Round to two decimal places.) Year 2013 2014 2015 2016 2017 2018 Expected return Stock L Stock M 14% 23% 16% 22% 18% 21% 18% 20% 19% 19% 21% 18% c. The standard deviation of expected portfolio returns, ore, over the 6-year period is %. (Round to two decimal places.)

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