Using the data in the following table, and the fact that the correlation of A...
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Finance
Using the data in the following table, and the fact that the correlation of A and B is 0.20, calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30% invested in stock B.
in order to copy its contents into a spreadsheet.)
| Realized Returns | ||||
| Year | Stock A | Stock B | ||
| 2008 | 6% | 27% | ||
| 2009 | 11% | 25% | ||
| 2010 | 9% | 6% | ||
| 2011 | 2% | 7% | ||
| 2012 | 3% | 13% | ||
| 2013 | 11% | 22% | ||
Question content area bottom
Part 1
The standard deviation of the portfolio is???
(Round to two decimal places.)
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