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Using the data in the following table, and the fact that the correlation of A and B is 0.59, calculate the volatility (standard deviation) of
Using the data in the following table, and the fact that the correlation of A and B is 0.59, calculate the volatility (standard deviation) of a portfolio that is 60% invested in stock A and 40% invested in stock B.
Realized Returns |
| ||||
Year | Stock A | Stock B | |||
2008 | 7% | 13% | |||
2009 | 19% | 33% | |||
2010 | 4% | 4% | |||
2011 | 6% | 7% | |||
2012 | 4% | 11% | |||
2013 | 5% | 28% |
The standard deviation of the portfolio is________%.(Round to two decimal places.)
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