Using the data from Table 12.3, what is the volatility of an equally weighted portfolio of Microsoft
Question:
Using the data from Table 12.3, what is the volatility of an equally weighted portfolio of Microsoft and Coca-Cola stock?
Table 12.3:
Transcribed Image Text:
Standard Deviation Microsoft Starbucks Netflix Coca-Cola McDonald's Cisco Boeing Microsoft 22% 1 0.29 0.23 0.32 0.33 0.52 0.31 Starbucks 20% 0.29 1 0.05 0.30 0.40 0.36 0.21 Netflix 62% 0.23 0.05 -0.04 0.00 0.10 0.19 Coca-Cola 13% 0.32 0.30 -0.04 1 0.53 0.11 0.30 McDonald's 13% 0.33 0.40 0.00 0.53 1 0.22 0.24 Cisco 24% 0.52 0.36 0.10 0.11 0.22 1 0.43 Boeing 23% 0.31 0.21 0.19 0.30 0.24 0.43 1
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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