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Question 41 Microsoft HP Alaska Air Southwest Airlines Ford Motor Kellogg General Mills Volatility (standard Deviation) Correlation with 33% 37% 37% 31% 50% 20% 17%
Question 41
| Microsoft | HP | Alaska Air | Southwest Airlines | Ford Motor | Kellogg | General Mills |
Volatility (standard Deviation) Correlation with | 33% | 37% | 37% | 31% | 50% | 20% | 17% |
Microsoft | 1.00 | 0.39 | 0.21 | 0.24 | 0.27 | 0.05 | 0.08 |
HP | 0.39 | 1.00 | 0.28 | 0.35 | 0.27 | 0.11 | 0.06 |
Alaska Air | 0.21 | 0.28 | 1.00 | 0.39 | 0.15 | 0.15 | 0.20 |
Southwest Airlines | 0.24 | 0.35 | 0.39 | 1.00 | 0.30 | 0.15 | 0.22 |
Ford Motor | 0.27 | 0.27 | 0.15 | 0.30 | 1.00 | 0.18 | 0.06 |
Kellogg | 0.05 | 0.11 | 0.15 | 0.15 | 0.18 | 1.00 | 0.54 |
General Mills | 0.08 | 0.06 | 0.20 | 0.22 | 0.06 | 0.54 | 1.00 |
Required:
- What is the covariance between Microsoft and HP?
- What is the covariance between General Mills and Ford?
- What is the volatility of a portfolio with equal amounts invested in Microsoft and Hewlett-Packard stock?
- What is the volatility of a portfolio with equal amounts invested in Microsoft and Alaska Air Stock?
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