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Using the data from Table 12.3 B , what is the volatility of an equally weighted portfolio of McDonalds and Starbucks stock? The volatility of
Using the data from Table 12.3 B , what is the volatility of an equally weighted portfolio of McDonalds 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) Cisco Boeing 26% 29% 28% 0.28 Standard Microsoft Starbucks Netflix Coca-Cola McDonald's Deviation 25% 61% 16% 14% Microsoft 1 0.35 0.18 0.40 0.43 Starbucks 0.35 1 0.19 0.23 0.17 Netflix 0.18 0.19 1 0.00 0.13 Coca-Cola 0.40 0.23 0.00 1 0.59 McDonald's 0.43 0.17 0.13 0.59 1 Cisco 0.52 0.52 0.10 0.27 0.28 Boeing 0.28 0.48 0.10 0.34 0.37 Source: Authors' calculations based on data from The Center for Research in Security Prices. 0.52 0.52 0.10 0.27 0.48 0.10 0.34 0.37 0.28 0.46 1 0.46 1
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