Using the data in the following table, and the fact that the correlation of A and B is 0.16, calculate the volatility (standard deviation) of a portfolio that is 50% invested in stock A and 50% invested in stock B. (Click on the following icon in order to copy its contents into a spreadsheet.) Realized Returns Year 2008 Stock A Stock B -12% 25% 2009 18% 22% 2010 8% 12% 2011 -5% -2% 2012 2% -6% 2013 5% 35% The standard deviation of the portfolio is 9.60 %. (Round to two decimal places.) "
Using the data in the following table, and the fact that the correlation of A and B is 0.16, calculate the volatility (standard deviation) of a portfolio that is 50% invested in stock A and 50% invested in stock B. (Click on the following icon in order to copy its contents into a spreadsheet.) Realized Returns Year 2008 Stock A Stock B -12% 25% 2009 18% 22% 2010 8% 12% 2011 -5% -2% 2012 2% -6% 2013 5% 35% The standard deviation of the portfolio is 9.60 %. (Round to two decimal places.) "
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Using the data in the following table, and the fact that the correlation of A and B is 0.16, calculate the volatility (standard deviation) of a portfolio that is 50% invested in stock A and 50%
invested in stock B. (Click on the following icon in order to copy its contents into a spreadsheet.)
Realized Returns
Year
2008
Stock A
Stock B
-12%
25%
2009
18%
22%
2010
8%
12%
2011
-5%
-2%
2012
2%
-6%
2013
5%
35%
The standard deviation of the portfolio is 9.60 %. (Round to two decimal places.)
"
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