Question 20, P8-13 (book/static) Homework: Chapter 8. Risk and Return HW Score: 0%, 0 of 20 points O Points: 0 of 1 Part 1 of 10 Save 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 40% of the dollar value of the portfolio, and stock M will account for the other 60%. The historical returns over the next 6 years, 2013 - 2018 for each of these stocks are shown in the following table: B Im a. Calculate the actual portfolio return, 'p, for each of the 6 years. b. Calculate the expected value of portfolio returns, p, 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 CH a. The actual portfolio return for year 2013 is %. (Round to two decimal places.) = X Data table (Click on the icon here 2 in order to copy the contents of the data table below into a spreadsheet.) Expected return Stock L Stock M Year 2013 20% 14% 14% 18% 16% 16% 2015 2016 14% 2017 2018 17% 19% 12% 10% Print Done