Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. using the data in the following? table, and the fa

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

50.1K

Verified Solution

Question

Finance

Using the data in the following? table, and the fact that thecorrelation of A and B is 0.39?, calculate the volatility?(standard deviation) of a portfolio that is 70% invested in stock Aand 30% invested in stock B.

Realized Returns

Year

Stock A

Stock B

2008

?8?%

27?%

2009

17?%

28?%

2010

1?%

11?%

2011

?3?%

?2?%

2012

1?%

?3?%

2013

8?%

26?%

The standard deviation of the portfolio is _%?

Answer & Explanation Solved by verified expert
4.5 Ratings (716 Votes)
SD of Stock SQRT Sum X Avg X2 n AVg SUm Ret n Avg A 8 17 1 3 1 8 6 16 6 267 Avg B 27 28 11 2 3 26 6 87 6 145 SD of Stock A Year Ret X X Avg X X Avg X2 2008 800 01067 00114    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Using the data in the following? table, and the fact that thecorrelation of A and B is 0.39?, calculate the volatility?(standard deviation) of a portfolio that is 70% invested in stock Aand 30% invested in stock B.Realized ReturnsYearStock AStock B2008?8?%27?%200917?%28?%20101?%11?%2011?3?%?2?%20121?%?3?%20138?%26?%The standard deviation of the portfolio is _%?

Other questions asked by students

Q

Many researchers suggest that there is great inequality in America today (e.g. class, race, gender, sexual...

Psychology
Q

5. A power cycle receives energy QH by heat transfer from a high temperature energy source...

Mechanical Engineering
Q

Question 3 Which of the following mutations would likely be most dangerous to a cell...

Biology
Q

C 2 d 4 44 When photons of energy hy fall on an aluminum plate...

Physics
Q

In parallelogram PQRS what is the value of Angle P S P 4y 7 10y...

Geometry
Q

Ken is buying a new set of DJ equipment Ken can afford one mixer and...

Geometry
Q

Young s inequality Let x y E R a Show that 2xy x y Hint...

Basic Math
Q

5y3 = -2(5-x)Step 2 of 2: Find the equation of the line which passes through...

Basic Math
Q

25 Classify each of the following as true or false for all values of x...

Algebra
Q

Explain how jurisdiction is applied to digital commerce.

Accounting
Q

Flint Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab...

Accounting
Q

Share Statistics Avg Vol (3 month) 3 13.13M Avg Vol (10 day) 12.18M Shares Outstanding...

Finance