QUESTION 1 5 points The table below (Table 8.9, BMA) shows the correlation between returns of 7 different stocks. How likely is it that an equally weighted portfolio of the 7 stocks has a standard deviation exceeding 25%? Explain. Correlation Coefficients Deutsche Bank Alcan BP LVMH Nestle Standard Deviation 29.7% 18.4 1.00 Heineken 20 20 53 1.00 33 .27 .56 1.00 Alcan BP Deutsche Bank Flat Heineken LVIMH Nestle 52 1.00 26 .50 1.00 33 1.00 35.9 17.2 31.0 13.8 TABLE 8.9 Standard deviations of returns and correlation coefficients for sample of seven stocks. Note Contrors and standard deviations we cokelated using returns in each country own currency in other words, they were that the westor protected against exchange rik QUESTION 1 5 points The table below (Table 8.9, BMA) shows the correlation between returns of 7 different stocks. How likely is it that an equally weighted portfolio of the 7 stocks has a standard deviation exceeding 25%? Explain. Correlation Coefficients Deutsche Bank Alcan BP LVMH Nestle Standard Deviation 29.7% 18.4 1.00 Heineken 20 20 53 1.00 33 .27 .56 1.00 Alcan BP Deutsche Bank Flat Heineken LVIMH Nestle 52 1.00 26 .50 1.00 33 1.00 35.9 17.2 31.0 13.8 TABLE 8.9 Standard deviations of returns and correlation coefficients for sample of seven stocks. Note Contrors and standard deviations we cokelated using returns in each country own currency in other words, they were that the westor protected against exchange rik