Portfolios of addison and wesley

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Reference no: EM131894183

Suppose Wesley Publishing's stock has a volatility of 60 %, while Addison Printing's stock has a volatility of 25 %. If the correlation between these stocks is 30 %,

What is the volatility of the following portfolios of Addison and Wesley:

a. 100 % Addison

b. 75 % Addison and25 % Wesley

c. 50 % Addison and50 % Wesley

a. The volatility of a portfolio of 100% Addison stock is %.

b. The volatility of a portfolio of 75% Addison and 25% Wesley is %.

c. The volatility of a portfolio of 50% Addison and 50 %Wesley is %.

Reference no: EM131894183

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