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 %.