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Using the data in the following table, and the fact that the correlation of A and B is 0.42, calculate the volatility (standard deviation) of
Using the data in the following table, and the fact that the correlation of A and B is 0.42, 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 14% 16% 2009 17% 25% 2010 99% 14% 2011 9% 5% 2012 33% 15% 2013 9% 35%
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