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 | 0.19 | -0.11 | 0.22 | 0.40 | 0.32 | 0.29 | ||||||||
| Siemens | 1.00 | 0.32 | 0.52 | 0.42 | 0.25 | 0.20 | |||||||||
| Nestl | 1.00 | 0.24 | 0.10 | 0.21 | 0.25 | ||||||||||
| LVMH | 1.00 | 0.07 | 0.21 | 0.13 | |||||||||||
| Toronto Dominion Bank | 1.00 | 0.19 | 0.15 | ||||||||||||
| Samsung | 1.00 | 0.31 | |||||||||||||
| BP | 1.00 | ||||||||||||||
| Standard deviation (%) | 26.1 | 18.9 | 12.8 | 21.4 | 15.7 | 26.5 | 21.6 | ||||||||
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
