Question: Using the data in the following table, and the fact that the correlation of A and B is 0 . 5 5 , calculate the

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

0.55,

calculate the volatility (standard deviation) of a portfolio that is

60%

invested in stock A and

40%

invested in stock B.

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

Year 2008 2009 2010 2011 2012 2013 Realized Returns Stock A Stock B - 1% 28% 9% 34% 1% 15% -4% -4% 3% - 5% 7% 21% The standard deviation of the portfolio is %. (Round to two decimal places.)

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