Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Picture of data is given provide working of ans as well Homework: HW - FBA- Portfolio choice Save Score: 0 of 100 pts 5 of

Picture of data is given provide working of ans as wellimage text in transcribedimage text in transcribed

Homework: HW - FBA- Portfolio choice Save Score: 0 of 100 pts 5 of 15 (4 complete) HW Score: 16.52%, 247.76 of 1500 pts P11-15 (similar to) Question Help Using the data from the table what is the volatility of an equally weighted portfolio of Southwest Airlines (LUV), Kellogg (K), and HP Inc. (HPQ) 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.) (Click on the following icon in order to copy its contents into a spreadsheet.) General Mills 17% Historical Annual Volatilities and Correlations for Selected Stocks (based on monthly returns, 1996-2017) Southwest Ford Microsoft HP Alaska Air Airlines Motor Kellogg Volatility (Standard Deviation) 32% 36% 36% 31% 47% 19% Correlation with Microsoft 1.00 0.40 0.18 0.22 0.27 0.04 HP Inc. 0.40 1.00 0.28 0.34 0.27 0.10 Alaska Air 0.18 0.28 1.00 0.40 0.15 0.15 Southwest Airlines 0.22 0.34 0.40 1.00 0.30 0.15 Ford Motor 0.27 0.27 0.15 0.30 1.00 0.17 Kellogg 0.04 0.10 0.15 0.15 0.17 1.00 General Mills 0.10 0.06 0.20 0.21 0.08 0.55 0.10 0.06 0.20 0.21 0.08 0.55 1.00 Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio

Authors: Robert A.Weigand

1st edition

978-111863091, 1118630912, 978-1118630914

Students also viewed these Finance questions