Question: Using the data in the following table, and the fact that the correlation of A and B is 0.35 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 0.35 calculate the volatility standard deviation of a portfolio thatis 50% nvested in stock A and 50% invested in stock B Realized Returns Year 2008 2009 2010 2011 2012 2013 Stock A -2% 10% 5% -4% 2% 7% Stock B 28% 26% 5% 1% 18% 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!

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...

What is the value (today's price) of a preferred stock that pays an annual dividend of $3.50 when the required rate of return is 8.5 percent? What is the value when the required rate of return...

Given that k=1 1/k2 = Ï2/6 (see Exercise 14.3.7), find the exact value of (2k 1)2

What can be said of net income before interest, taxes, depreciation, and amortization? Allows internal accountants to conduct long-term financial decisions Uncovers fraudulent activities Allows for...

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