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 80% of the dollar value of the portfolio, and stock M will account for the other 20%. 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, lp, 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 Data Table (Click on the icon here e in order to copy the contents of the data table below into a spreadsheet.) Expected return Year Stock L Stock M 2013 16% 20% 2014 17% 19% 2015 17% 18% 2016 17% 17% 2017 17% 16% 2018 18% 15% Check