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		0.26		0.40		0.41		0.16		0.41		0.18
Siemens			1.00		0.28		0.16		0.18		0.35		0.08
Nestl					1.00		0.05		0.06		-0.02		0.06
LVMH							1.00		0.37		0.55		0.11
Toronto Dominion Bank									1.00		0.14		0.14
Samsung											1.00		0.13
BP													1.00
Standard deviation (%)	29.00		40.80		51.80		27.30		21.00		41.50		49.40

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3. Award. 10.00 points The Treasury bill rate is 4.5%, and the expected return on the market portfolio is 10.9%. Use the capital asset pricing model. b. What is the risk premium on the market? (Enter your answer as a percent rounded to 1 decimal place.) c. What is the required return on an investment with a beta of 1.2? (Enter your answer as a percent rounded to 2 decimal places.) a. If an investment with a beta of 0.26 offers an expected return of 8.5%, does it have a positive NPV? e. If the market expects a return of 10.8% from stock X, what is its beta? (Round your answer to 2 decimal places.) b. % % Risk premium c. Required return d. Does it have a positive NPV? Beta e References Worksheet Difficulty: 2 Medium