Question 4 Using the data below estimate the monthly standard deviation of the returns of a portfolio consisting of AAA common stock and BBB common stock. The number of shares of each stock in the portfolio are also given below. Enter your answer as a percent without the %; round you final answer to two decimals. BBB AAA BBB AAA Return Portfolio Return Return Weight Weight SD of portfolio 8 BBB Adj Close 90.68 87.05 87.92 99.35 85.44 84.59 80.36 74.73 84.45 72.63 78.44 80.79 82.41 Number of Shares Stock Date 3/1/15 4/1/15 5/1/15 6/1/15 7/1/15 8/1/15 9/1/15 10/1/15 11/1/15 12/1/15 1/1/16 2/1/16 3/1/16 4/1/16 5/1/16 6/1/16 7/1/16 8/1/16 9/1/16 10/1/16 11/1/16 12/1/16 1/1/17 2/1/17 3/1/17 4/1/17 5/1/17 6/1/17 7/1/17 8/1/17 9/1/17 10/1/17 11/1/17 12/1/17 1/1/18 2/1/18 3/1/18 4/1/18 5/1/18 6/1/18 1 AAA Adj Close 77.37 72.73 82.18 69.86 70.55 77.61 71.40 65.69 54.52 46.89 52.98 54.04 56.21 53.96 62.59 64.47 68.98 55.18 62.36 60.49 64.12 60.91 58.47 66.66 68.66 67.97 78.85 72.54 78.35 90.10 72.98 66.41 74.38 87.02 100.08 83.06 76.42 68.78 67.40 78.19 79.93 83.93 86.45 103.74 115.15 128.97 122.52 142.12 143.54 142.11 130.74 121.59 113.08 128.91 110.86 121.95 141.46 168.33 136.35 151.35 160.43 142.78 114.23 108.52 99.83 117.80 115.45 7/1/18 8/1/18 9/1/18 10/1/18 11/1/18 12/1/18 1/1/19 2/1/19 3/1/19 4/1/19 5/1/19 6/1/19 7/1/19 8/1/19 9/1/19 10/1/19 11/1/19 12/1/19 1/1/20 2/1/20 3/1/20 82.10 77.17 87.97 71.26 75.53 66.47 65.81 65.81 53.96 46.41 47.33 43.07 43.07 43.94 50.53 54.57 64.94 58.44 47.34 40.71 43.15 92.36 106.21 101.96 99.92 103.92 101.84 113.05 91.57 93.40 98.07 79.44 75.46 80.75 88.01 92.41 82.25 79.78 86.16 69.79 73.98 76.94 Question 4 Using the data below estimate the monthly standard deviation of the returns of a portfolio consisting of AAA common stock and BBB common stock. The number of shares of each stock in the portfolio are also given below. Enter your answer as a percent without the %; round you final answer to two decimals. BBB AAA BBB AAA Return Portfolio Return Return Weight Weight SD of portfolio 8 BBB Adj Close 90.68 87.05 87.92 99.35 85.44 84.59 80.36 74.73 84.45 72.63 78.44 80.79 82.41 Number of Shares Stock Date 3/1/15 4/1/15 5/1/15 6/1/15 7/1/15 8/1/15 9/1/15 10/1/15 11/1/15 12/1/15 1/1/16 2/1/16 3/1/16 4/1/16 5/1/16 6/1/16 7/1/16 8/1/16 9/1/16 10/1/16 11/1/16 12/1/16 1/1/17 2/1/17 3/1/17 4/1/17 5/1/17 6/1/17 7/1/17 8/1/17 9/1/17 10/1/17 11/1/17 12/1/17 1/1/18 2/1/18 3/1/18 4/1/18 5/1/18 6/1/18 1 AAA Adj Close 77.37 72.73 82.18 69.86 70.55 77.61 71.40 65.69 54.52 46.89 52.98 54.04 56.21 53.96 62.59 64.47 68.98 55.18 62.36 60.49 64.12 60.91 58.47 66.66 68.66 67.97 78.85 72.54 78.35 90.10 72.98 66.41 74.38 87.02 100.08 83.06 76.42 68.78 67.40 78.19 79.93 83.93 86.45 103.74 115.15 128.97 122.52 142.12 143.54 142.11 130.74 121.59 113.08 128.91 110.86 121.95 141.46 168.33 136.35 151.35 160.43 142.78 114.23 108.52 99.83 117.80 115.45 7/1/18 8/1/18 9/1/18 10/1/18 11/1/18 12/1/18 1/1/19 2/1/19 3/1/19 4/1/19 5/1/19 6/1/19 7/1/19 8/1/19 9/1/19 10/1/19 11/1/19 12/1/19 1/1/20 2/1/20 3/1/20 82.10 77.17 87.97 71.26 75.53 66.47 65.81 65.81 53.96 46.41 47.33 43.07 43.07 43.94 50.53 54.57 64.94 58.44 47.34 40.71 43.15 92.36 106.21 101.96 99.92 103.92 101.84 113.05 91.57 93.40 98.07 79.44 75.46 80.75 88.01 92.41 82.25 79.78 86.16 69.79 73.98 76.94