Question 41 Microsoft HP Alaska Air Southwest Ford Airlines Motor Kellogg General Mills 33% 37% 37% 31% 50% 20% 17% Volatility (standard Deviation) Correlation with 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 0.24 0.35 0.39 1.00 0.30 0.15 0.22 Southwest Airlines 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: a. What is the covariance between Microsoft and HP? b. 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? d. What is the volatility of a portfolio with equal amounts invested in Microsoft and Alaska Air Stock