Year 2013 2014 2015 2016 2017 2018 Expected return Stock L Stock M 15% 22% 17% 20% 18% 20% 16% 20% 14% 22% 12% 18% 0 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 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: a. Calculate the actual portfolio return, fp, for each of the years. b. Calculate the expected value of portfolio returns, ir, over the B-year period, e. Calculate the standard deviation of expected portfolio returns, 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