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Portfolio return and standard deviation 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 last 6 years, 2013-2018, for each of these stocks are shown in the following table. P8-13 Expected return Year Stock L Stock M 2013 2014 2015 2016 2017 2018 14% 14 16 17 17 19 20% 18 16 14 12 10

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