list 11 Data table K Using the data from Table 12.3 . what is the volatility of an equally weighted portfolio of Microsoft and Coca-Cola stock? The volatility of the portfolio is %. (Round to one decimal place.) TABLE 12.3 Estimated Annual Volatilities and Correlations for Selected Stocks (Based on Monthly Returns, January 2009-December 2018) Standard Microsoft Starbucks Netflix Coca-Cola McDonald's Cisco Deviation 22% 20% 62% 13% 13% 24% Microsoft 1 0.29 0.23 0.32 0.33 0.52 Starbucks 0.29 1 0.05 0.30 0.40 0.36 Netflix 0.23 0.05 -0.04 0.00 0.10 Coca-Cola 0.32 0.30 -0.04 0.53 0.11 McDonald's 0.33 0.40 0.00 0.53 1 0.22 Cisco 0.52 0.36 0.10 0.11 0.22 Boeing 0.31 0.21 0.19 0.30 0.24 0.43 Source: Authors' calculations based on data from Yahoo Finance. Print Done <- - X
list 11 Data table K Using the data from Table 12.3 . what is the volatility of an equally weighted portfolio of Microsoft and Coca-Cola stock? The volatility of the portfolio is %. (Round to one decimal place.) TABLE 12.3 Estimated Annual Volatilities and Correlations for Selected Stocks (Based on Monthly Returns, January 2009-December 2018) Standard Microsoft Starbucks Netflix Coca-Cola McDonald's Cisco Deviation 22% 20% 62% 13% 13% 24% Microsoft 1 0.29 0.23 0.32 0.33 0.52 Starbucks 0.29 1 0.05 0.30 0.40 0.36 Netflix 0.23 0.05 -0.04 0.00 0.10 Coca-Cola 0.32 0.30 -0.04 0.53 0.11 McDonald's 0.33 0.40 0.00 0.53 1 0.22 Cisco 0.52 0.36 0.10 0.11 0.22 Boeing 0.31 0.21 0.19 0.30 0.24 0.43 Source: Authors' calculations based on data from Yahoo Finance. Print Done <- - X
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:list
11
Data table
K
Using the data from Table 12.3 . what is the volatility of an equally weighted portfolio of
Microsoft and Coca-Cola stock?
The volatility of the portfolio is %. (Round to one decimal place.)
TABLE 12.3
Estimated Annual Volatilities and Correlations for Selected Stocks
(Based on Monthly Returns, January 2009-December 2018)
Standard
Microsoft Starbucks
Netflix
Coca-Cola
McDonald's
Cisco
Deviation
22%
20%
62%
13%
13%
24%
Microsoft
1
0.29
0.23
0.32
0.33
0.52
Starbucks
0.29
1
0.05
0.30
0.40
0.36
Netflix
0.23
0.05
-0.04
0.00
0.10
Coca-Cola
0.32
0.30
-0.04
0.53
0.11
McDonald's
0.33
0.40
0.00
0.53
1
0.22
Cisco
0.52
0.36
0.10
0.11
0.22
Boeing
0.31
0.21
0.19
0.30
0.24
0.43
Source: Authors' calculations based on data from Yahoo Finance.
Print
Done
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