Use the table for the question(s)below.
Consider the following expected returns, volatilities and correlations:

-The volatility of a portfolio that is equally invested in Webjet and Data#3 is closest to:

Question

Use the table for the question(s)below.
Consider the following expected returns, volatilities and correlations:
 
-The volatility of a portfolio that is equally invested in Webjet and Data#3 is closest to:

Quizplus · Accepted Answer

The volatility of a portfolio that is equally invested in Webjet and Data#3 can be calculated as follows:
Portfolio volatility = sqrt[(0.5)^2*(0.179^2) + (0.5)^2*(0.076^2) + 2*(0.5)*(0.5)*(0.179)*(0.076)*(0.6)]
= 0.076 or 7.6%
Therefore, the closest option is A.

Use the Table for the Question(s)below