Question: Using the data in the following table, and the fact that the correlation of A and B is 0.32, calculate the volatility (standard deviation) of

Using the data in the following table, and the fact that the correlation of A and B is 0.32, calculate the volatility (standard deviation) of a portfolio that is 80% invested in stock A and 20% invested in stock B.

Stock A Stock B 2005 -4 28 2006 19 20 2007 3 8 2008 -1 -8 2009 5 -9 2010 13 30

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