Question: Using the data in the following table, and the fact that the correlation of A and B is 0.61, calculate the volatility (standard deviation) of

Using the data in the following table, and the fact that

Using the data in the following table, and the fact that the correlation of A and B is 0.61, calculate the volatility (standard deviation) of a portfolio that is 60% invested in stock A and 40% invested in stock B. Year 2008 2009 2010 2011 2012 2013 Realized Returns Stock A Stock B -3% 12% 8% 40% 7% 2% -3% -6% 1% 11% 10% 23% The standard deviation of the portfolio is 57.64 %. (Round to two decimal places.)

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