= Homework: Assignment 5 (Chapter 5) Question 4, P5.16 (similar to) Part 1 of 14 HW Score: 18.33%, 1.83 of 10 points O Points: 0 of 2 Save Jamie Wong is thinking of building an investment portfolio containing two stocks, L and M. Stock L will represent 45% of the dollar value of the portfolio, and stock M will account for the other 55%. The historical returns over the last 6 years, 2013-2018, for each of these stocks are shown in the following table a. Calculate the actual portfolio retum, rp, for each of the 6 years. b. Calculate the average return for each stock and for the portfolio over the 6-year period. c. Calculate the standard deviation of retums for each asset and for the portfolio. How does the portfolio standard deviation compare to the standard deviations of the individual assets? d. How would you characterize the correlation of returns of the two stocks Land M? e. Discuss any benefits of diversification achieved by Jamie through creation of the portfolio. a. The average portfolio return for 2013 is %. (Enter as a percentage and round to one decimal place.) Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Expected Return Year Stock L Stock M 2013 12% 23% 2014 12 19 2015 15 16 2016 17 15 2017 17 12 2018 21 10 Print Done