Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ANSWER WILL THUMBS UP!!! Using the data in the following table, and the fact that the correlation of A and B is 0.37, calculate

PLEASE ANSWER WILL THUMBS UP!!!
image text in transcribed
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 50% invested in stock A and 50% invested in stock B. (Click on the following icon in order to copy its contents into a spreadsheet.) Realized Returns Year Stock A Stock B 2008 - 5% 29% 2009 10% 39% 2010 2% 1% 2011 - 10% -3% 2012 5% - 11% 2013 15% 23% The standard deviation of the portfolio is % (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Digital Business And Electronic Commerce

Authors: Bernd W Wirtz

1st Edition

3030634817, 9783030634810

More Books

Students also viewed these Finance questions

Question

What is adverse impact? How can it be proved?

Answered: 1 week ago