Using the data from Table 12.3, what is the volatility of an equally weighted portfolio of...
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Using the data from Table 12.3, what is the volatility of an equally weighted portfolio of Coca-Cola and Starbucks 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 Starbucks Netflix Coca-Cola McDonald's Microsoft Starbucks 22% 20% 1 0.29 0.23 0.32 0.33 0.52 0.31 0.29 1 0.05 0.30 0.40 0.36 0.21 Netflix 62% 0.23 0.05 1 -0.04 0.00 0.10 0.19 Cisco Boeing Source: Authors' calculations based on data from Yahoo Finance. 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 Using the data from Table 12.3, what is the volatility of an equally weighted portfolio of Coca-Cola and Starbucks 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 Starbucks Netflix Coca-Cola McDonald's Microsoft Starbucks 22% 20% 1 0.29 0.23 0.32 0.33 0.52 0.31 0.29 1 0.05 0.30 0.40 0.36 0.21 Netflix 62% 0.23 0.05 1 -0.04 0.00 0.10 0.19 Cisco Boeing Source: Authors' calculations based on data from Yahoo Finance. 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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