Portfolio return and standard deviation Personal Finance Problem Jamie Wong is thinking of building an investment portfolio containing two stocks, L and M. Stock L will represent 70% of the dollar value of the portfolio and stock Mwil account for the other 30% The histo cal returns over the next 6 years, 2013-2018, for each of these stocks are shown in the following table: EEB a. Calcuiate the actual portfolio return, p 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 retuns, a , 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 [ %, (Round to two decimal places ) Enter your answer in the answer box and then click Check Answer parts Clear All Check Answer javascript:doExercise(6) 8, for each of these stocks are shown in the following table: E return, Ip for each of the 6 years. i Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Expected return Stock M 21% 20% 19% 18% 17% 16% Year Stock L 2014 2015 2016 2017 2018 14% 15% 15% 15% 15% 16%