Question
Using the data in the followingtable, and the fact that the correlation of A and B is 0.35, calculate the volatility(standard deviation) of a portfolio
Using the data in the followingtable, and the fact that the correlation of A and B is 0.35, 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 13% 12%
2009 14% 26%
2010 9% 6%
2011 6% 1%
2012 4% 13%
2013 8% 27%
The standard deviation of the portfolio is?
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
119-49633-5, 1119496497, 1119496330, 978-1119496496
