Question: Your eccentric Aunt Claudia has left you $50,000 in Alcan shares plus $50,000 cash. Unfortunately her will requires that the Alcan stock not be sold

Your eccentric Aunt Claudia has left you $50,000 in Alcan shares plus $50,000 cash. Unfortunately her will requires that the Alcan stock not be sold for one year and the $50,000 cash must be entirely invested in one of the stocks shown in Table 7.8. What is the safest attainable portfolio under these restrictions?

Correlation Coefficients Deutsche Bank Standard Deviation 31.0% 24.8 37.5 39.6 41.9 19.7

Correlation Coefficients Deutsche Bank Standard Deviation 31.0% 24.8 37.5 39.6 41.9 19.7 46.3 Alcan BP LVMH Nestl KLM 32 20 45 1.0 Sony 27 .15 42 .01 36 .14 1.0 Alcan BP Deutsche Bank 1.0 48 1.0 40 .05 1.0 .43 26 08 23 50 .31 37 KLM LVMH 32 1.0 Nestl 1.0 16 Sony

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