Question: Using the data from the accompanying table, what is the volatility of an equally weighted portfolio of Loblaw and OpenText stock? Estimated Annual Volatilities and

Using the data from the accompanying table, what is the volatility of an equally weighted portfolio of

Loblaw and OpenText stock?

Estimated Annual Volatilities and Correlations for Selected Socks (Based on Monthly Returns, 2013-2017)

Stantec

Canadian

Tire

Canadian

Pacific

OpenText

Loblaw

Canadian

Natural

Resources

WestJet

Airlines Ltd.

Standard Deviation

24%

18%

22%

22%

17%

24%

22%

Stantec

1.00

0.18

0.41

0.12

0.12

0.44

0.24

Canadian Tire

0.18

1.00

0.25

0.02

0.35

0.12

0.00

Canadian Pacific

0.41

0.25

1.00

0.29

0.28

0.27

0.19

OpenText Corporation

0.12

0.02

0.29

1.00

0.21

0.09

0.00

Loblaw

0.12

0.35

0.28

0.21

1.00

0.07

0.05

Canadian Natural Resources

0.44

0.12

0.27

0.09

0.07

1.00

0.18

WestJet Airlines Ltd.

0.24

0.00

0.19

0.00

0.05

0.18

1.00

Source: Data from Yahoo!Finance Canada.

The volatility of the portfolio is

SD(Rp) = %.

(Round to one decimal place.

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