Question
Using the data in the following table, and the fact that the correlation of A and B is 0.63 , calculate the volatility (standard deviation)
Using the data in the following table, and the fact that the correlation of A and B is 0.63, calculate the volatility (standard deviation) of a portfolio that is 60% invested in stock A and 40 % invested in stock B.
Stock A Stock B 2005 -7 17 2006 16 26 2007 7 14 2008 -7 -3 2009 1 -3 2010 7 29
The standard deviation of the portfolio is [---]%. (Round to two decimal places.)
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The Company Valuation Playbook Invest With Confidence
Authors: Charles Sunnucks
1st Edition
1838470816, 978-1838470814
