Find the annualized volatility for each stock find the


Below are a set of prices for Facebook (FB) and Southwest Airlines (LUV) over the last 3 months. Keep in mind that we normally would not calculate the below statistics for such a short time span, as your answers will be heavily skewed by recent market activity.

FB LUV

12/1/16 115.05 49.84

1/1/17 130.32 52.31

2/1/17 135.54 57.80

3/1/17 137.42 58.88

c) Find the annualized volatility for each stock.

d) Find the correlation between the two stocks (note that you want to use monthly, not annualized, standard deviation here).

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Financial Management: Find the annualized volatility for each stock find the
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