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  3. consider stocks x and y. the two stocks have a cor

Consider Stocks X and Y. The two stocks have a correlation (of excess returns) of...

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Accounting

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Consider Stocks X and Y. The two stocks have a correlation (of excess returns) of 44%. The expected return of Stocks X and Y (i.e. the fair discount rates), are 9.3% and 13.9% respectively. The annualized variance of Stock X is 4.2%. The annualized volatility of Stock Y is 58%. If you invest $29 into Stock X, and $59 into Stock Y, then what is the annualized volatility of the resulting two asset portfolio? Enter your answer as a percentage, not as a decimal, using at least 4 digits of precision

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