Question: Using the data from Table 123 . what is the volatility of an equally weighted portfolio of Microsoft and Coca-Cola stock? The volatility of the
Using the data from Table 123 . what is the volatility of an equally weighted portfolio of Microsoft and Coca-Cola stock? The volatility of the portfolio is % (Round to one decimal place) Data table TABLE 12.3 Estimated Annual Volatilities and Correlations for Selected Stocks (Based on Monthly Returns, January 2009 December 2018) Coca-Cola 13% McDonald's 13% Boeing 23% Standard Microsoft Starbucks Netflix Deviation 22% 20% 62% Microsoft 1 0.29 0.23 Starbucks 0.29 1 0.05 Netflix 0.23 0.05 Coca-Cola 0.32 0.30 -0.04 McDonald's 0.33 0.40 0.00 Cisco 0.52 0.36 0.10 Boeing 0.31 0.21 0.19 Sourcer Authors' calculations based on data from Yahoo Finance, 0.32 0.30 -0.04 1 0.53 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 0.31 0.21 0.19 0.30 0.24 0.43 1 0.11 0.30 0.43
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