Question: Using the data in the following table, what is the covariance between the stocks of Microsoft and Kellogg? The covariance between the stocks of Microsoft

Using the data in the following table, what is the covariance between the stocks of Microsoft and Kellogg?

The covariance between the stocks of Microsoft and Ford MotorMicrosoft and Ford Motor is ______.(Round to three decimal places.)

Microsoft HP Alaska Air Southwest Airlines Ford Motor Kellogg General Mills
Volatility (Standard Deviation) 0.33 0.37 0.37 0.31 0.5 0.2 0.17
Correlation with
Microsoft 1 0.39 0.21 0.24 0.27 0.05 0.08
HP 0.39 1 0.28 0.35 0.27 0.11 0.06
Alaska Air 0.21 0.28 1 0.39 0.15 0.15 0.2
Southwest Airlines 0.24 0.35 0.39 1 0.3 0.15 0.22
Ford Motor 0.27 0.27 0.15 0.3 1 0.18 0.06
Kellogg 0.05 0.11 0.15 0.15 0.18 1 0.54
General Mills 0.08 0.06 0.2 0.22 0.06 0.54 1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!