Question: Using the data from Table 12.3 what is the volatility of an equally weighted portfolio of Netflix and Starbucks stock? The volatility of the portfolio


Using the data from Table 12.3 what is the volatility of an equally weighted portfolio of Netflix and Starbucks stock? The volatility of the portfolio is %. (Round to one decimal place.) TABLE 12.3 Estimated Annual Volatilities and Correlations for Selected Stocks (Based on Monthly Returns, January 2009 December 2018) Standard Microsoft Starbucks Netflix Deviation 22% 20% Microsoft 1 0.29 0.23 Starbucks 0.29 1 0.05 Netflix 0.23 0.05 1 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 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 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 1 022 0.24
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