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Personal Finance Problem P8-13 Portfolio return and standard deviation Jamie Wong is considering building an investment portfolio containing two stocks, L and M. Srock L will represent 40% of the dollar value of the portfolio, and stock M will account for the other 60%. The expected returns over the next 6 years, 2013-2018, for each of these stocks are shown in the following table. Expected return Stock L Stock M Year 2013 2014 2015 2016 2017 2018 14% 14 16 17 17 19 20% 18 16 14 12 10 the face of Return Calculate the expected portfolio return, p, for each of the 6 years. Calculate the expected value of portfolio returns, over the 6-year period. Calculate the standard deviation of expected portfolio returns, or over the year period d. How would you characterize the correlation of returns of the two stocks L. and M Discuss any benefits of diversification achieved by Jamie through creation of the portfolio