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:1.What is the covariance between Microsoft and HP?2. What is the covariance between General Mills and Ford?3. What is the volatility of a portfolio with equal amounts invested in Microsoft and Hewlett-Packard stock?4. What is the volatility of a portfolio with equal amounts invested in Microsoft and Alaska Air Stock?

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...

	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:

1.What is the covariance between Microsoft and HP?

2. What is the covariance between General Mills and Ford?

3. What is the volatility of a portfolio with equal amounts invested in Microsoft and Hewlett-Packard stock?

4. What is the volatility of a portfolio with equal amounts invested in Microsoft and Alaska Air Stock?

Jun 10, 2022