Ch12 1. Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Year 2008 2009 2010 2011 2012 2013 Stock A Stock B 21% 25% 11% 19% 33% 99% 10% 22% 2. Using the data in the following table, and the fact that the correlation of A and B is 0.39, calculate the volatility (standard deviation) of a portfolio that is 60% invested in stock A and 40% invested in stock B Realized Returns Year 2008 2009 2010 2011 2012 2013 Stock A Stock B 20% 21% 33% -2% 14% 55% 33% 11% 29% -%? (Round to two decimal places.) The standard deviation of the portfolio is 3. Suppose Wesley Publishing's stock has a volatility of 55%, while Addison Printing's stock has a volatility of 20%. If the correlation between these stocks is 65%, what is the volatility of the following portfolios of Addison and Wesley: a. 100% Addison b.75% Addison and 25% Wesley C. 50% Addison and 50% Wesley