P8-13 (similar to) Question Help Portfolio return and standard deviation Personal Finance Problem Jamie Wong is considering building an investment portfolio containing two stocks, L and M. Stock L will represent 70% of the dollar value of the portfolio, and stock M will account for the other 30%. The expected retums over the next 6 years, 2015-2020, for each of these stocks are shown in the following table: a. Calculate the expected portfolio return, ro, for each of the 6 years. b. Calculate the expected value of portfolio returns, ip, 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 expected portfolio return for year 2015 is %. (Round to two decimal places.) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 2015 2016 2017 2018 2019 2020 Expected return Stock L Stock M 15% 16% 20% 18% 18% 18% 16% 18% 14% 18% 12 Print Done