(Solved): QUESTION 7 1. Determine the volatility for the following three stock portfolio Asset A B Alloca ...

QUESTION 7 1. Determine the volatility for the following three stock portfolio Asset A B ? Allocation 30% 45% 25% Expected return 8.6% 9.5% 12.7% Expected 25% 32% 42% standard deviation Correlation A ? B ? A 1.00 0.84 0.72 B 0.84 1.00 0.96 ? 0.72 0.96 1.00 31.62% 9.59% 30.97% O 32.74%