Question: The table below shows standard deviations and correlation coefficients for seven stocks from different countries. Calculate the variance of a portfolio with equal investments in
The table below shows standard deviations and correlation coefficients for seven stocks from different countries. Calculate the variance of a portfolio with equal investments in each stock. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Round your answer to 4 decimal places.)
| BHP Billiton | Siemens | Nestl | LVMH | Toronto Dominion Bank | Samsung | BP | |||||||||
| BHP Billiton | 1.00 | 0.32 | 0.35 | 0.43 | 0.22 | 0.43 | 0.15 | ||||||||
| Siemens | 1.00 | 0.34 | 0.22 | 0.15 | 0.29 | 0.21 | |||||||||
| Nestl | 1.00 | 0.23 | 0.24 | 0.16 | 0.24 | ||||||||||
| LVMH | 1.00 | 0.08 | 0.22 | 0.12 | |||||||||||
| Toronto Dominion Bank | 1.00 | 0.09 | 0.09 | ||||||||||||
| Samsung | 1.00 | 0.10 | |||||||||||||
| BP | 1.00 | ||||||||||||||
| Standard deviation (%) | 27.10 | 19.90 | 13.80 | 22.40 | 16.70 | 27.50 | 22.60 | ||||||||
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