Question: Consider the data provided in the table below for a portfolio of assets A and B. The portfolio weights and variances are given in the

Consider the data provided in the table below for a portfolio of assets A and B. The portfolio weights and variances are given in the table. The variances are expressed in decimal form. Forexample, if the standard deviation is50%, then the variance is 0.52= 0.25. The variance of returns of the portfolio is 0.1181. What is the correlation of assets A andB?

Portfolio Weights

A .35

B .65

Variances

A - 0.2401

B - 0.1936

Standard Deviation

A - 0.49

B - 0.44

The correlation of assets A and B is

(Round to two decimalplaces.)

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