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Using the data in the following table, and the fact that the correlation of A and B is 0.20, calculate the volatility (standard deviation) of
Using the data in the following table, and the fact that the correlation of A and B is 0.20, calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30% invested in stock B.
Realized Returns | |||||
Year | Stock A | Stock B | |||
2008 | 4% | 28% | |||
2009 | 8% | 23% | |||
2010 | 5% | 4% | |||
2011 | 5% | 1% | |||
2012 | 4% | 15% | |||
2013 | 11% | 25% |
The standard deviation of the portfolio is ___%. (round to two decimal places)
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