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 | 0.31 | 0.36 | 0.40 | 0.14 | 0.40 | 0.14 | ||||||||
| Siemens | 1.00 | 0.28 | 0.14 | 0.14 | 0.32 | 0.10 | |||||||||
| Nestl | 1.00 | 0.07 | 0.08 | 0.00 | 0.08 | ||||||||||
| LVMH | 1.00 | 0.35 | 0.53 | 0.09 | |||||||||||
| Toronto Dominion Bank | 1.00 | 0.12 | 0.12 | ||||||||||||
| Samsung | 1.00 | 0.11 | |||||||||||||
| BP | 1.00 | ||||||||||||||
| Standard deviation (%) | 27.00 | 38.80 | 49.80 | 25.30 | 19.00 | 39.50 | 47.40 | ||||||||
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Consider the following information:
| Stock Return if Market Return Is: | ||
| Stock | 13% | 10% |
| A | 0 | 14 |
| B | 5 | 21 |
| C | 25 | 36 |
| D | 10 | 8 |
| E | 15 | -10 |
What is the beta of each of the stocks? (Leave no cells blank - be certain to enter "0" wherever required. Use decimals, not percents, in your calculations. A negative value should be indicated by a minus sign. Round your answers to 1 decimal place.)
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