Portfolio return and standard deviaion Personal Finance Problem Jamie Wong is thinking of building an investment portfolio containing two stocks, L and M. Stock L will represert 40% of the dollar value of the portfolio, and stock M will account for the other 60%. 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, fp, for each of the 6 years. b. Calculate the expected value of portfolio returns, in, 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 retum for year 2013 is % (Round to two decimal places.) ter7&8 & Question 15, P8-13 (similar to) Part 1 of 10 HW Score: 77.06%, 13 of 17 points Points: 0.1 of 1 standard deviation Personal Finance Problem Jamie Wong is thinking of building an investment pou - Data table in (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) CH ne Expected return Stock L Stock M 15% 23% 16% 22% 17% 21% 18% 20% 19% 19% 19% 18% Year 2013 2014 2015 2016 2017 2018 tfoli Print Done