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Portfolio Risk The table below shows standard deviations and correlation coefficients for eight stocks from different countries. Calculate the variance of a portfolio with equal

Portfolio Risk The table below shows standard deviations and correlation coefficients for eight stocks from different countries. Calculate the variance of a portfolio with equal investments in each stock.

BHP BP Fiat Heineken Korea Electric Nestle Sony Tata Motors
BHP 1.00 .42 .38 .16 .33 -.03 .19 .50

BP

 .42 1.0 .40 .25 .26 .12 .41 .29
Fiat .38 .40 1.0 .17 .19 -0.10 .44 .32
Heineken .16 .25 .17 1.0 .17 .44 .37 .26
Korea Electric .33

.26

 .19 .17 1.0 .01 .16 .13
Nestle -0.03 .12 -.10 .44 .01 1.0 .23 .08
Sony .19 .41 .44 .37 .16 .23 1.0 .19
Tata Motors .50 .29 .32 .26 .13 .08 .19 1.0
Standard Dev % 19.80 29.10 43.06 18.04 27.83 9.70 44.84 39.11

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