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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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