Question: 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


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) Source: Authors' calculations based on data from Yahoo Finance. Using the data from Table 12.3, what is the volatility of an equally weighted portfolio of Netflix and Boeing stock? The volatility of the portfolio is: SD[RP]=w12SD[R1]2+w22SD[R2]2+2w1w2Corr(R1,R2)SD[R1]SD[R2] Therefore, SD[RP]=0.5020.232+0.5020.622+20.500.500.190.230.62=0.351 The volatility of the portfolio is 35.1%. Data table TABLE 12.3 Estimated Annual Volatilities and Correlations for Selected Stocks (Based on Monthly Returns, January 2009-December 2018) Source: Authors' calculations based on data from Yahoo Finance
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