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
50%,
what is the volatility of the following portfolios of Addison and Wesley: a.
100%
Addisonb.
75%
Addison and
25%
Wesleyc.
50%
Addison and
50%
Wesley
Question content area bottom
Part 1
a. The volatility of a portfolio of
100%
Addison stock is
enter your response here%.
(Round to two decimal places.)
Part 2
b. The volatility of a portfolio of
75%
Addison and
25%
Wesley is
enter your response here%.
(Round to two decimal places.)
Part 3
c. The volatility of a portfolio of
50%
Addison and
50%
Wesley is
enter your response here%.
(Round to two decimal places.)
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