Homework:Chapter 12: Systematic Risk and the Equity Risk Pr

Question 8, P 12-17 (similar to)

Part 1 of 3

HW Score: 43.33%, 6.5 of 15 points

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Suppose Wesley Publishing's stock has a volatility of

50%,

while Addison Printing's stock has a volatility of

30%.

If the correlation between these stocks is

50%,

what is the volatility of the following portfolios of Addison and Wesley: a.

100%

Addisonb.

75%

Addison and

25%

Wesleyc.

50%

Addison and

50%

Wesleya. The volatility of a portfolio of

100%

Addison stock is

enter your response here%.

(Round to two decimal places.)