Question
Suppose Wesley Publishing's stock has a volatility of 60%, while Addison Printing's stock has a volatility of 30%. If the correlation between these stocks is
Suppose Wesley Publishing's stock has a volatility of 60%, while Addison Printing's stock has a volatility of 30%. If the correlation between these stocks is 30%, what is the volatility of the following portfolios of Addison and Wesley:
a. 100% Addison
b. 75% Addison and 25% Wesley
c. 50% Addison and 50% Wesley
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