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
Related questions
Question
F1 plaese help.....
![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.)
"](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85848953-e044-4313-be14-71e6f4623ad9%2F94b04ed1-aeee-4310-9f19-1fabfff5bd98%2Fkhyg6ig_processed.jpeg&w=3840&q=75)
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.)
"
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education