Question: stock B as well! thank you! Using the data in the following tabin, and the fact that the correlation of A and B is 0.56,
Using the data in the following tabin, and the fact that the correlation of A and B is 0.56, calculate the volatity (standard deviation) of a portfolio that is 70% tevested in stock A and 30% invested in stock B. Year 2008 2009 2010 2011 2012 2013 Realized Returns Stock A Stock B - 13% 14% 17% 28% 2% 12% -8% -7% 2% - 14% 12% 20% The standard deviation of the portfolio is (Round to two decimal places
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
