Question: Using the data in the following table, and the fact that the correlation of A and B is 0.50, calculate the volatility (standard deviation) of

Using the data in the following table, and the fact that the correlation of A and B is 0.50, calculate the volatility (standard deviation) of a portfolio that is 50% invested in share A and 50% invested in share B.

What is the standard deviation of the portfolio in percentage?

	Stock A	Stock B
2005	-2	26
2006	15	31
2007	8	5
2008	-6	-10
2009	4	-14
2010	8	35

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

You are considering how to invest part of your retirement savings. You have decided to put $100,000 into three stocks: 59% of the money in GoldFinger (currently $19/share), 12% of the money in...

This is one of my last assignments for the semester and I really need help with these questions .. It is due tonight by midnight 11/24/2020 and I have uploaded the ones Ive tried my best on. If...

need help please! Using the data in the following table, and the fact that the correlation of A and B is 0.54, calculate the volatility (standard deviation) of a portfolio that is 50% invested in...

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%...

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 50% invested in stock A and 50%...

Homework: Lab 11 Score: 0 of 1 pt 6 of 15 (1 complete) Problem 11-11 Question Help Using the data in the following table, and the fact that the correlation of A and B is 0.58, calculate the...

Using the data in the following table, and the fact that the correlation of A and B is 073, calculate the volatility (standard deviation of a portfolio that is 50% invested in stock A and 50%...

Using the data in the following table, and the fact that the correlation of A and B is 0.75, calculate the volatility (standard deviation) of a portfolio that is 50 % invested in stock A and 50 %...

Finance: Please answer all. Please ensure that your calculations are correct. Thank you very much Question 1: Question 2: 2a. What is the average annual return? The average return is how many %.?...

Q1 : Using the data in the following? table, and the fact that the correlation of A and B is 0.64?, calculate the volatility?(standard deviation) of a portfolio that is 50% invested in stock A and...

The probability of getting heads and tails when you toss a coinis? 0, but the probability of getting heads or tails is 1. The statement does not make sense because the probability ofgetting heads and...

1. What command can be issued to access information about the various NET commands? What other types of information can be found from this command? 2. What command would you issue to transfer all...

YearReturnsXY 1 1 5 % 2 0 % 2 1 8 3 0 3 9 1 5 4 9 1 6 5 1 0 2 0 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y . Note:...

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...

3-1. What are the three steps in the writing process? [LO-1]

Moral hazard is mostly a problem in countries with universal insurance programs like the UK.

It would be easy for private health insurers to eliminate moral hazard by redesigning insurance contracts, but they are prevented from doing so by strict government regulations (at least in most...