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Part $1$

Using the data from Table$12\mathrm{.}3,$ LOADING...$,$ what is the volatility of an equally weighted portfolio of Microsoft and Kellogg $$stock$?$

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Part $1$

The volatility of the portfolio is

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enter your response here$\%.$TABLE $12\mathrm{.}3$

Estimated Annual Volatilities and Correlations for Selected Stocks $($Based on Monthly Returns, January $1997-$December $2021)$

$\backslash$table$[[\backslash$table$[[$Volatility$],[($Standard$],[$Deviation$)]],\backslash$table$[[$Microsoft$],[31\%]],\backslash$table$[[$HP$],[35\%]],\backslash$table$[[$Alaska Air$],[37\%]],\backslash$table$[[$Southwest$],[$Airlines$],[32\%]],\backslash$table$[[$Ford Motor$],[46\%]],\backslash$table$[[$Kellogg$],[19\%]],\backslash$table$[[$General$],[$Mills$],[17\%]]],[$Microsoft$,1\mathrm{.}00,0\mathrm{.}39,0\mathrm{.}19,0\mathrm{.}21,0\mathrm{.}27,0\mathrm{.}07,0\mathrm{.}10],[$HP$,0\mathrm{.}39,1\mathrm{.}00,0\mathrm{.}29,0\mathrm{.}35,0\mathrm{.}28,0\mathrm{.}10,0\mathrm{.}04],[$Alaska Air,$0\mathrm{.}19,0\mathrm{.}29,1\mathrm{.}00,0\mathrm{.}47,0\mathrm{.}20,0\mathrm{.}16,0\mathrm{.}17],[$Southwest Airlines,$0\mathrm{.}21,0\mathrm{.}35,0\mathrm{.}47,1\mathrm{.}00,0\mathrm{.}31,0\mathrm{.}17,0\mathrm{.}18],[$Ford Motor,$0\mathrm{.}27,0\mathrm{.}28,0\mathrm{.}20,0\mathrm{.}31,1\mathrm{.}00,0\mathrm{.}19,0\mathrm{.}09],[$Kellogg$,0\mathrm{.}07,0\mathrm{.}10,0\mathrm{.}16,0\mathrm{.}17,0\mathrm{.}19,1\mathrm{.}00,0\mathrm{.}54],[$General Mills,$0\mathrm{.}10,0\mathrm{.}04,0\mathrm{.}17,0\mathrm{.}18,0\mathrm{.}09,0\mathrm{.}54,1\mathrm{.}00]]$

Source: Authors' calculations based on data from Yahoo! Finance.