Question: Using the data from Table 12.3, what is the volatility (standard deviation) of an equally weighted portfolio of Netflix and Boeing stock? TABLE 12.3 Estimated

 Using the data from Table 12.3, what is the volatility (standard

Using the data from Table 12.3, what is the volatility (standard deviation) of an equally weighted portfolio of Netflix and Boeing stock? TABLE 12.3 Estimated Annual Volatinties and Correlations for Selected Stocks (Based on Monthly Returns, January 2006 December 2015) Standard Microsoft Starbucks Netflix Coca-Cola McDonald's Deviation 25% 29% 61% 16% 14% Microsoft 1 0.35 0.18 0.40 0.43 Starbucks 0.35 1 0.19 0.23 0.17 Nett 0.18 0.19 1 0.00 0.13 Coca-Cola 0.40 0.23 0.00 1 0.59 McDonald's 0.43 0.17 0.13 0.59 Cisco 0.52 0.52 0.27 0.28 Boeing 0.28 0.48 0.10 0.34 0.37 Source: Authors' calculations based on data from the center for Research in Security Prices Cisco 28% 0.52 0.52 0.10 0.27 0.28 1 0.45 Boeing 26% 0.28 0.48 0.10 0.34 0.37 0.46 1 10 O A. 14.3% OB. 44.3% OC.34.3% OD. 24.3%

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