Using the data in the following table, and the fact that the correlation of A and B is 0.29, calculate the volatility (standard deviation) of a portfolio that is 60% invested in share A and 40% invested inshare B. Click on the icon located on the top-right corner of the data table below to copy its contents into a spreadsheet.Realised ReturnsYearShare AShare B2007- 14%14%200820099%3%31%7%2010- 2%- 1%20112%- 6%20128%16%The standard deviation of the portfolio is ☐ %. (Round to two decimal places.)

SOLUTION. To calculate the volatility (standard deviation) of the portfolio, we first need to…

Answered: Using the data in the following table,…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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