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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
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. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Round your answer to 5 decimal places.)
BHP | BP | Fiat Chrysler | Heineken | Korea Electric | Nestl | Sony | Tata Motors | |
BHP | 1.00 | .34 | .38 | .45 | .14 | .45 | .16 | .29 |
BP | .34 | 1.00 | .29 | .14 | .16 | .36 | .07 | .12 |
Fiat | .38 | .29 | 1.00 | .03 | .02 | .10 | .24 | .05 |
Heineken | .45 | .14 | .03 | 1.00 | .38 | .56 | .12 | .46 |
Korea Electric | .14 | .16 | .02 | .38 | 1.00 | .15 | .15 | .11 |
Nestl | .45 | .36 | .10 | .56 | .15 | 1.00 | .14 | .01 |
Sony | .16 | .07 | .24 | .12 | .15 | .14 | 1.00 | .10 |
Tata Motors | .29 | .12 | .05 | .46 | .11 | .01 | .10 | 1.00 |
Standard deviation (%) | 30.00 | 41.80 | 52.80 | 28.30 | 22.00 | 42.50 | 50.40 | 52.50 |
Portfolio variance
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