Suppose Wesley Publishings stock has a volatility of 60 , while Addison Printings stock has a volatility of 30 If the correlation between these stocks is 25 , what is the volatility of the following portfolios of Addison and Wesley (a) 100 Addison, (b) 75 Addison and 25 Wesley, and (c) 50 Addison a...

Suppose Wesley Publishings stock has a volatility of 60%, while Addison Printings stock has a volatility of

Question:

Suppose Wesley Publishing’s stock has a volatility of 60%, while Addison Printing’s stock has a volatility of 30%. If the correlation between these is 25%, what is the volatility of the following portfolios of Addison and Wesley:
(a) 100% Addison,
(b) 75% Addison and 25% Wesley, and
(c) 50% Addison and 50% Wesley.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...