Question: Using the data in the followingtable, and the fact that the correlation of A and B is 0.35, calculate the volatility(standard deviation) of a portfolio

Using the data in the followingtable, and the fact that the correlation of A and B is 0.35, 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 13% 12%

2009 14% 26%

2010 9% 6%

2011 6% 1%

2012 4% 13%

2013 8% 27%

The standard deviation of the portfolio is?

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