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 1.00 0.28 1.00 Nestl 0.37 0.34 LVMH 0.40 0.16 0.09 1.00 Toronto Dominion Bank 0.16 0.14 0.10 0.33 1.00 BHP Billiton Siemens Nestl LVMH Toronto Dominion Bank Samsung BP Standard deviation (%) 1.00 Samsung 0.40 0.31 0.02 0.51 0.10 1.00 BP 0.14 -0.12 0.10 -0.07 -0.10 -0.09 1.00 45.40 25.00 36.80 47.80 23.30 17.00 37.50 Answer is complete but not entirely correct. Portfolio variance 78.1000 x 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 1.00 0.28 1.00 Nestl 0.37 0.34 LVMH 0.40 0.16 0.09 1.00 Toronto Dominion Bank 0.16 0.14 0.10 0.33 1.00 BHP Billiton Siemens Nestl LVMH Toronto Dominion Bank Samsung BP Standard deviation (%) 1.00 Samsung 0.40 0.31 0.02 0.51 0.10 1.00 BP 0.14 -0.12 0.10 -0.07 -0.10 -0.09 1.00 45.40 25.00 36.80 47.80 23.30 17.00 37.50 Answer is complete but not entirely correct. Portfolio variance 78.1000 x
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
