Question: Using the data from the table below, what is the volatility of an equally weighted portfolio of McDonalds and Starbucks stock? TABLE 12.3 Estimated Annual

Using the data from the table below, what is the volatility of an equally weighted portfolio of McDonalds and Starbucks stock?

Using the data from the table below, what is the volatility of

TABLE 12.3 Estimated Annual Volatilities and Correlations for Selected Stocks (Based on Monthly Returns, January 2009 December 2018) McDonald's 13% 0.29 0.33 Standard Microsoft Starbucks Netflix Deviation 22% 20% 62% Microsoft 1 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 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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