Question: may someone help me to solve this problem: Using the data in the followingtable, and the fact that the correlation of A and B is0.48,calculate
may someone help me to solve this problem: Using the data in the followingtable, and the fact that the correlation of A and B is0.48,calculate the volatility(standard deviation) of a portfolio that is70%invested in stock A and30%invested in stock B.
| Realized Returns | ||||
| Year | Stock A | Stock B | ||
| 2008 | 10% | 21% | ||
| 2009 | 20% | 30% | ||
| 2010 | 5% | 7% | ||
| 2011 | 5% | 3% | ||
| 2012 | 2% | 8% | ||
| 2013 | 9% | 25% |
The standard deviation of the portfolio is%.(Round to two decimalplaces.)
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