Question: Using the data in the following table, what is the covariance between the stocks of MicrosoftandGeneralMills? (Click on the following icon in order to copy

Using the data in the following table, what is the covariance between the stocks of MicrosoftandGeneralMills?

(Click on the following icon

in order to copy its contents into a spreadsheet.)

Historical Annual Volatilities and Correlations for Selected Stocks (based on monthly returns, 1996-2017)

Microsoft

HP

Alaska

Air

Southwest Airlines

Ford

Motor

Kellogg

General

Mills

Volatility (Standard Deviation)

0.32

0.36

0.36

0.31

0.47

0.19

0.17

Correlation with

Microsoft

1.00

0.40

0.18

0.22

0.27

0.04

0.10

HP

0.40

1.00

0.27

0.34

0.27

0.10

0.06

Alaska Air

0.18

0.27

1.00

0.40

0.15

0.15

0.20

Southwest Airlines

0.22

0.34

0.40

1.00

0.30

0.15

0.21

Ford Motor

0.27

0.27

0.15

0.30

1.00

0.17

0.08

Kellogg

0.04

0.10

0.15

0.15

0.17

1.00

0.55

General Mills

0.10

0.06

0.20

0.21

0.08

0.55

1.00

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