Using the data in the following table, and the fact that the correlation of A and B is 0 30, calculate the volatility (standard deviation) of a portfolio that is 70 invested in stock A and 30 invested in stock B Realized Returns Year Stock A Stock B 2008 8 22 2009 18 26 2010 9 2 2011 5 7 2012 3 9 2013 5 19 The standard deviation of the portfolio is (Round to two decimal places

The Answer is in the image, click to view ...

Question: Using the data in the following table, and the fact that the correlation of A and B is 0.30, calculate the volatility (standard deviation) of

Using the data in the following table, and the fact that the correlation of A and B is 0.30, calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30% invested in stock B.

	Realized Returns
Year	Stock A	Stock B
2008	8%	22%
2009	18%	26%
2010	9%	2%
2011	5%	7%
2012	3%	9%
2013	5%	19%

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 0.57, 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 0.20, 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 0.37, 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%...

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...

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 0.43, calculate the volatility (standard deviation) of a portfolio that is 50% invested in stock A and 50%...

Read the case below and answer these questions: Do you think Leonard has grounds to sue Dr. Farrah-Fowler for breach of express contract? Would your decision be different if, after signing the...

An Italian restaurant in Weardale is considering offering a takeaway pizza service. The restaurant estimates that it will sell 2.500 pizzas a year, charging $5 per pizza. This would give the...

The market and Stock J have the following probability distributions: Probability rM rJ . 3 1 5 % 2 0 % . 4 9 5 . 3 1 8 1 2 a . Calculate the expected rates of return for the market and Stock J . b ....

Kedu n'ime ngwa r nd a na - eji maka njikwa r iji ch p ta usoro nke usoro d oke mkpa? Nh r : A ) Pareto Chart B ) z z Mkpa ( CPM ) C ) Eserese kp kp az D ) gbasa at mat "

2 Whether you answered yes or no, what are the reasons for your answer? Microsoft India Corporation Ltd was set up in 1990 with headquarters in the city of Hyderabad and expanded to 13 other cities...

1 S elect one of the formulations of HRM covered in this chapter and compare it with Emirates practice. To what extent do you think Emirates is undertaking SHRM? Emirates NBD is one of the biggest...

2 How does the recession have an impact on the role and function of HRM? Ireland currently faces significant economic, fiscal and banking problems. A major research programme funded by several Irish...