Using the data from Table 12.3 E, what is the volatility of an equally weighted portfolio of Coca - Cola and Starbucks stock? The volatility of the portfolio is %. (Round to one decimal place.)
Using the data from Table 12.3 E, what is the volatility of an equally weighted portfolio of Coca - Cola and Starbucks stock? The volatility of the portfolio is %. (Round to one decimal place.)
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
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Transcribed Image Text:Using the data from Table 12.3 E, what is the volatility of an equally weighted portfolio of Coca - Cola and Starbucks stock?
The volatility of the portfolio is %. (Round to one decimal place.)
Data Table
TABLE 12.3
Estimated Annual Volatilities and Correlations for Selected Stocks
(Based on Monthly Returns, January 2006–December 2015)
Standard
Microsoft
Starbucks
Netflix
Соса-Cola
McDonald's
Cisco
Boelng
Deviation
25%
29%
61%
16%
14%
28%
26%
Microsoft
1
0.35
0.18
0.40
0.43
0.52
0.28
Starbucks
0.35
1
0.19
0.23
0.17
0.52
0.48
Netflix
0.18
0.19
1
0.00
0.13
0.10
0.10
Соса-Cola
0.40
0.23
0.00
0.59
0.27
0.34
McDonald's
0.43
0.17
0.13
0.59
1
0.28
0.37
Cisco
0.52
0.52
0.10
0.27
0.28
1
0.46
Enter your answer in the answe
Вoeing
0.28
0.48
0.10
0.34
0.37
0.46
1
Source: Authors' calculations based on data from The Center for Research in Security Prices.
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