Question: Using the data from the accompanying table, what is the volatility of an equally weighted portfolio of Canadian PacificCanadian Pacific and OpenTextOpenText stock? Estimated Annual
Using the data from the accompanying table, what is the volatility of an equally weighted portfolio of
Canadian PacificCanadian Pacific and OpenTextOpenText 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 |
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