Question: Using the data in the following table, and the fact that the correlation of A and B is 0.20, calculate the volatility (standard deviation) of

Using the data in the following table, and the fact that the correlation of A and B is 0.20, calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30% invested in stock B.

in order to copy its contents into a spreadsheet.)

	Realized Returns
Year	Stock A	Stock B
2008	6%	27%
2009	11%	25%
2010	9%	6%
2011	2%	7%
2012	3%	13%
2013	11%	22%

Question content area bottom

Part 1

The standard deviation of the portfolio is???

(Round to two decimal places.)

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!

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...

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...

Using the data in the following table, and the fact that the correlation of A and B is 0.20, calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30%...

Using the data in the following table, and the fact that the correlation of A and B is 0.56, calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30%...

Using the data in the following table, and the fact that the correlation of A and B is 0.37, calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30%...

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...

a. Stocks A and B have the following returns: Stock A Stock B 1 0.11 0.07 2 0.04 0.02 3 0.13 0.04 4 0.04 0.02 5 0.09 0.03 a. What are the expected returns of the two stocks? (round to three decimal...

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%...

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...

During the month of July, the Scolari Corporation received $60,000 in cash investments from owners, paid $25,000 cash for supplies, and purchased $10,000 of supplies on account. The ending balance in...

The report 2007 Electronic Monitoring and Surveillance Survey: Many Companies Monitoring, Recording, Videotapingand FiringEmployees (American Management Association, 2007) summarized a survey of 304...

In the Characteristic Selectivity ( CS ) performance measure, a . portfolio performance is measured by comparing the returns of each stock in the portfolio to the return of a benchmark portfolio. b ....

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".