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 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, lp, 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 return for year 2013 is%. (Round to two decimal places.) Data Table - X (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 2013 2014 Expected return Stock L Stock M 15% 23% 17% 22% 17% 21% 19% 20% 19% 19% 19% 18% 2015 2016 2017 2018 Print Done 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 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, lp, 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 return for year 2013 is%. (Round to two decimal places.) Data Table - X (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 2013 2014 Expected return Stock L Stock M 15% 23% 17% 22% 17% 21% 19% 20% 19% 19% 19% 18% 2015 2016 2017 2018 Print Done