Using the data in the following table, calculate the return for investing in Bocing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock immediately. Historical Stock and Dividend Data for Boeing Date Price Dividend Date Price Dividend 1/2/2008 86.62 1/3/2011 66.40 2/6/2008 79.91 0.40 2/9/2011 72.63 0.42 5/7/2008 84.55 0.40 5/11/2011 79.08 0.42 8/6/2008 65.40 0.40 8/10/2011 57.41 0.42 11/5/2008 49.55 11/8/2011 66.65 0.42 1/2/2009 45.25 1/3/2012 74.22 0.40 Using the data in the following table, estimate (a) the average return and volatility for each stock. (b) the covariance between the stocks, and (c) the correlation between these two stocks. Year 2007 2008 2009 2010 2011 2012 Stock A- 10% 20% 5% -5% 2% 9% Stock B 21% 30% -3% -8% 25% Use the data in Problem 5, consider a portfolio that maintains a 50% weight on stock A and a 50% weight on stock B. a. What is the return each year of this portfolio? b. Based on your results from part a, compute the average return and volatility of the portfolio d. Explain why the portfolio has a lower volatility than the average volatility of the two stocks, Using your estimates from Problem 5. calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30% invested in stock B. Using the data in the following table, calculate the return for investing in Bocing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock immediately. Historical Stock and Dividend Data for Boeing Date Price Dividend Date Price Dividend 1/2/2008 86.62 1/3/2011 66.40 2/6/2008 79.91 0.40 2/9/2011 72.63 0.42 5/7/2008 84.55 0.40 5/11/2011 79.08 0.42 8/6/2008 65.40 0.40 8/10/2011 57.41 0.42 11/5/2008 49.55 11/8/2011 66.65 0.42 1/2/2009 45.25 1/3/2012 74.22 0.40 Using the data in the following table, estimate (a) the average return and volatility for each stock. (b) the covariance between the stocks, and (c) the correlation between these two stocks. Year 2007 2008 2009 2010 2011 2012 Stock A- 10% 20% 5% -5% 2% 9% Stock B 21% 30% -3% -8% 25% Use the data in Problem 5, consider a portfolio that maintains a 50% weight on stock A and a 50% weight on stock B. a. What is the return each year of this portfolio? b. Based on your results from part a, compute the average return and volatility of the portfolio d. Explain why the portfolio has a lower volatility than the average volatility of the two stocks, Using your estimates from Problem 5. calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30% invested in stock B