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

0.60,

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	1%		18%
2009	8%		32%
2010	4%		5%
2011	2%		2%
2012	1%		9%
2013	11%		18%

The standard deviation of the portfolio is

enter your response here%.

(Round to two decimal places.)

Using the data in the following table, and the fact that the correlation of A and B is 0.60, 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 spreadsh Year 2008 2009 2010 2011 2012 2013 Realized Returns Stock A Stock B - 1% 18% 8% 32% 4% 5% -2% - 2% 1% -9% 11% 18% The standard deviation of the portfolio is %. (Round to two decimal places.)