Question: Using the data in the following table, and the fact that the correlation of A and B is 0.43, calculate the volatility (standard deviation) of

Using the data in the following table, and the fact that the correlation of A and B is 0.43, calculate the volatility (standard deviation) of a portfolio that is 50% invested in stock A and 50% invested in stock B. (Click on the following icon e in order to copy its contents into a spreadsheet.) Year 2008 2009 2010 2011 2012 2013 Realized Returns Stock A Stock B -15% 18% 18% 35% 5% 7% - 5% -2% 2% - 11% 9% 19% The standard deviation of the portfolio is%. (Round to two decimal places.) Using the data in the following table, and the fact that the correlation of A and B is 0.43, calculate the volatility (standard deviation) of a portfolio that is 50% invested in stock A and 50% invested in stock B. (Click on the following icon e in order to copy its contents into a spreadsheet.) Year 2008 2009 2010 2011 2012 2013 Realized Returns Stock A Stock B -15% 18% 18% 35% 5% 7% - 5% -2% 2% - 11% 9% 19% 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
