Portfolio return and standard deviation Personal Finance Problem Jamie Wong is considering building an investment portfolio containing two stocks, L and M. Stock L will represent 25% of the dollar value of the portfolio, and stock M will account for the other 75%. The expected returns over the next 6 years, 2015 - 2020, for each of these stocks are shown in the following table: EE! a. Calculate the expected portfolio return, r, for each of the 6 years b. Calculate the expected value of portfolio returns, rp, over the 6-year period c. Calculate the standard deviation of expected portfolio returns. r. 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 Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Expected return Year 2015 2016 2017 2018 2019 2020 Stock L 14% 15% Stock M 22% 21% 19% 17% 15% 13% 1790 19% 20% Print Done