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 | 0.26 | 0.35 | 0.38 | 0.16 | 0.38 | 0.17 | |||||||
| Siemens | 1.00 | 0.34 | 0.16 | 0.17 | 0.37 | 0.07 | ||||||||
| Nestl | 1.00 | 0.10 | 0.11 | 0.03 | 0.11 | |||||||||
| LVMH | 1.00 | 0.32 | 0.50 | 0.06 | ||||||||||
| Toronto Dominion Bank | 1.00 | 0.09 | 0.09 | |||||||||||
| Samsung | 1.00 | 0.08 | ||||||||||||
| BP | 1.00 | |||||||||||||
| Standard deviation (%) | 24.00 | 35.80 | 46.80 | 22.30 | 16.00 | 36.50 | 44.40 | |||||||
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