Question: Using the data from Table 12.3 what is the volatility of an equally weighted portfolio of Microsoft and Coca-Cola stock? The volatility of the portfolio
Using the data from Table 12.3 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) Standard Deviation Microsoft Microsoft 22% Starbucks 20% Netflix 62% Coca-Cola 13% McDonald's 13% Cisco 24% Boeing 23% 0.29 0.23 0.32 0.33 0.29 0.52 0.36 1 0.05 0.30 0.40 Starbucks Netflix Coca-Cola 0.31 0.21 0.19 0.05 1 -0.04 0.00 0.23 0.32 0.10 0.30 -0.04 1 0.53 0.11 0.30 McDonald's 0.40 0.00 0.53 1 0.22 0.24 Cisco 0.33 0.52 0.31 0.11 0.22 0.36 0.21 1 0.10 0.19 0.43 Boeing 0.30 0.24 0.43 1 Source: Authors' calculations based on data from Yahoo Finance. Enter Print Done
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