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Homework answers / question archive / Using the data in the following table, and the fact that the correlation of A and B is 0

Using the data in the following table, and the fact that the correlation of A and B is 0

Finance

Using the data in the following table, and the fact that the correlation of A and B is 0.46, calculate the volatility (standard deviation) of a portfolio that is 80% invested in stock A and 20% invested in stock B. (Click on the following icon in order to copy its contents into a spreadsheet.) Realized Returns Year Stock A Stock B 2008 29% 2009 10% 21% 2010 9% 8% 2011 -8% - 10% 2012 5% - 13% 2013 13% 33% - 2% The standard deviation of the portfolio is % (Round to two decimal places.)

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