Data table (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) Southwest Ford General Microsoft НР Alaska Air Airlines Motor Kellogg Mills Volatility (Standard Deviation) 32% 36% 36% 31% 47% 19% 17% Correlation with Microsoft 1.00 0.40 0.18 0.22 0.27 0.04 0.10 HP Inc. 0.40 1.00 0.28 0.34 0.27 0.10 0.06 Alaska Air 0.18 0.28 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 Print Done
Data table (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) Southwest Ford General Microsoft НР Alaska Air Airlines Motor Kellogg Mills Volatility (Standard Deviation) 32% 36% 36% 31% 47% 19% 17% Correlation with Microsoft 1.00 0.40 0.18 0.22 0.27 0.04 0.10 HP Inc. 0.40 1.00 0.28 0.34 0.27 0.10 0.06 Alaska Air 0.18 0.28 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 Print Done
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Data table
(Click on the following icon g in order to copy its contents into a spreadsheet.)
Historical Annual Volatilities and Correlations for Selected Stocks (based on monthly returns, 1996-2017)
Southwest
Ford
General
Microsoft
НР
Alaska Air
Airlines
Motor
Kellogg
Mills
Volatility (Standard Deviation)
32%
36%
36%
31%
47%
19%
17%
Correlation with
Microsoft
1.00
0.40
0.18
0.22
0.27
0.04
0.10
HP Inc.
0.40
1.00
0.28
0.34
0.27
0.10
0.06
Alaska Air
0.18
0.28
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
Print
Done
Transcribed Image Text:Using the data from the table E, what is the volatility of an equally weighted portfolio of Alaska Air (ALK), HP Inc. (HPQ), and General Mills (GIS) stock? Hint: Make
sure to round all intermediate calculations to at least four decimal places.
The volatility of an equally weighted portfolio of the three stocks is
%. (Round to two decimal places.)
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