Portfolio return and standard deviation Personal Finance Problem Jamie Wong is thinking of building an investment portfolio containing two stocks, Land M. Stock L will represent 55% of the dollar value of the portfolio, and stock M will account for the other 45%. The historical returns over the next 6 years, 2013 - 2018, for each of these stocks are shown in the following table: Data Table a. Calculate the actual portfolio return, ro, 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. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) a. The actual portfolio return for year 2013 is %. (Round to two decimal places.) Year 2013 2014 2015 2016 2017 2018 Expected return Stock L Stock M 15% 25% 16% 24% 17% 23% 18% 22% 20% 21% 22% 20% Print Done