Question: Using the data in the following table, and the fact that the correlation of A and B is 0.51, calculate the volatility (standard deviation) of

Using the data in the following table, and the fact that the correlation of A and B is

0.51,

calculate the volatility (standard deviation) of a portfolio that is

80%

invested in stock A and

20%

invested in stock B. (Click on the following icon

in order to copy its contents into a spreadsheet.)

Realized Returns

Year

Stock A

Stock B

2008

3%

30%

2009

12%

28%

2010

3%

8%

2011

3%

8%

2012

1%

14%

2013

9%

31%

Question content area bottom

Part 1

The standard deviation of the portfolio is

enter your response here%.

(Round to two decimal places.)

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