Question: 1. Dellss = 0.22; IBMs = 0.13. The correlation between Dell and IBM is 0.32, and the weights are 50% each. Find the portfolio volatility

1. Dellss = 0.22; IBMs = 0.13. The correlation between Dell and IBM is 0.32, and the weights are 50% each.

    • Find the portfolio volatility (standard deviation).
    • If the weights are now 30 % and 70 % for Dell and IBM respectively, how would the volatility of portfolio change? Briefly justify your answer.

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