Calculate this pleaseOnly typed solution Using the data in the following table,, and the fact that the correlation of A and B is 0.81, calculate the volatility (standard deviation) of a portfolio that is 65% invested in stock A and 35% invested instock B.The return of stock A is 4.33 %. (Round to two decimal places.)The return of stock B is 12.50 %. (Round to two decimal places.)The variance of stock A is 0.00632. (Round to five decimal places.)The variance of stock B is 0.02743. (Round to five decimal places.)The standard deviation of stock A isThe standard deviation of stock B is8.71 %. (Round to two decimal places.)18.14%. (Round to two decimal places.)The variance of the portfolio of 65% stock A and 35% stock B is 0.02388. (Round to fThe standard deviation of the portfolio of 65% stock A and 35% stock B is %. (RourData table(Click on the following icon in order to copy its contents into a spreadsheet.)Year201720182019202020212022Realized ReturnsStock A- 2%16%8%- 8%2%10%PrintDoneStock B13%38%13%- 5%- 10%26%-X

Standard deviation is a statistical tool used to quantify the degree of variability or dispersion of…

Using the data in the following table,, and the fact that the correlation of A and B is 0.81, calculate the volatility (standard deviation) of a portfolio that is 65% invested in stock A and 35% invested in stock B.

Using the data in the following table,, and the fact that the correlation of A and B is 0.81, calculate the volatility (standard deviation) of a portfolio that is 65% invested in stock A and 35% invested in stock B.

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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Question

Calculate this please

Only typed solution

Using the data in the following table,, and the fact that the correlation of A and B is 0.81, calculate the volatility (standard deviation) of a portfolio that is 65% invested in stock A and 35% invested in
stock B.
The return of stock A is 4.33 %. (Round to two decimal places.)
The return of stock B is 12.50 %. (Round to two decimal places.)
The variance of stock A is 0.00632. (Round to five decimal places.)
The variance of stock B is 0.02743. (Round to five decimal places.)
The standard deviation of stock A is
The standard deviation of stock B is
8.71 %. (Round to two decimal places.)
18.14%. (Round to two decimal places.)
The variance of the portfolio of 65% stock A and 35% stock B is 0.02388. (Round to f
The standard deviation of the portfolio of 65% stock A and 35% stock B is %. (Rour
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Year
2017
2018
2019
2020
2021
2022
Realized Returns
Stock A
- 2%
16%
8%
- 8%
2%
10%
Print
Done
Stock B
13%
38%
13%
- 5%
- 10%
26%
-
X

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Using the data in the following table,, and the fact that the correlation of A and B is 0.81, calculate the volatility (standard deviation) of a portfolio that is 65% invested in stock A and 35% invested in stock B. The return of stock A is 4.33 %. (Round to two decimal places.) The return of stock B is 12.50 %. (Round to two decimal places.) The variance of stock A is 0.00632. (Round to five decimal places.) The variance of stock B is 0.02743. (Round to five decimal places.) The standard deviation of stock A is 8.71%. (Round to two decimal places.) The standard deviation of stock B is 18.14%. (Round to two decimal places.) The variance of the portfolio of 65% stock A and 35% stock B is 0.02388. (Round to f The standard deviation of the portfolio of 65% stock A and 35% stock B is%. (Rour Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Realized Returns Year 2017 2018 2019 2020 2021 2022 Stock A - 2% 16% 8% - 8% 2% 10% Print Done Stock B 13% 38%…
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