P5-12 Portfolio return and standard deviation Jamie Wong is considering building a portfolio containing two assets, L and M.

P5–12 Portfolio return and standard deviation Jamie Wong is considering building a portfolio containing two assets, L and M. Asset L will represent 40% of the dollar value of the portfolio, and asset M will account for the other 60%. The expected returns over the next 6 years, 2007–2012, for each of these assets, are shown in the following table:Expected returnYear