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Using the data in the following table, and the fact that the correlation of A...

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Accounting

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Using the data in the following table, and the fact that the correlation of A and B is 0.08 , 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.) The standard deviation of the portfolio is \%. (Round to two decimal places.) You want to invest $50,000 in a portfolio with a beta of no more than 1.5 and an expected return of 14%. Bay Corp. has a beta of 1.1 and an expected return of 11.6%, and City Inc. has a beta of 1.8 and an expected retum of 15.8% The risk-free rate is 5%. Is it possible to create this portfolio investing in Bay Corp. and City inc. If so, how much will you invest in each? Select the correct choice and, if necessary, fill in the answer boxes to complete your choice. A. It is possible to create the portfolio by investing $ in Bay Corp. and $ in City Inc. (Round to the nearest cent.) B. It is not possible to create the portfolio

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