Question
Using the data in the following table, and the fact that the correlation of A and B is 0.81, calculate the volatility (standard deviation) of
Using the data in the following table, and the fact that the correlation of A and B is 0.81, calculate the volatility (standard deviation) of a portfolio that is 50% invested in stock A and 50% invested in stock B.
Stock A Stock B 2008 -5 % 12% 2009 18% 40% 2010 1% 6% 2011 -10% -8% 2012 3% -8% 2013 10% 19%
The standard deviation of the portfolio is ?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
10th Edition
053875446X, 978-0538754460
