Question: The table below shows standard deviations and correlation coefficients for eight stocks from different countries. BHP BP Fiat Heineken Nestle Sony TAM Tata Motors BHP

The table below shows standard deviations and correlation coefficients for eight stocks from different countries.

BHP BP Fiat Heineken Nestle Sony TAM Tata Motors
BHP 1.00 0.26 0.37 0.38 0.21 0.38 0.17 0.30
BP 0.26 1.00 0.30 0.21 0.17 0.32 0.09 0.13
Fiat 0.37 0.30 1.00 0.18 0.19 0.11 0.21 0.16
Heineken 0.38 0.21 0.18 1.00 0.36 0.54 0.10 0.44
Nestl 0.21 0.17 0.19 0.36 1.00 0.13 0.13 0.13
Sony 0.38 0.32 0.11 0.54 0.13 1.00 0.12 0.25
TAM 0.17 0.09 0.21 0.10 0.13 0.12 1.00 0.10
Tata Motors 0.30 0.13 0.16 0.44 0.13 0.25 0.10 1.00
Standard deviation 28.00% 39.80 50.80 26.30 20.00 40.50 48.40 50.50

Calculate the variance of a portfolio with equal investments in each stock.

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