Question
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 .30 .45 .38 .16 .38 .13 .33 BP .30 1.00 .33 .16 .13 .34 .44 .16 Fiat .45 .33 1.00 .14 .15 .07 .41 .12 Heineken .38 .16 .14 1.00 .20 .47 .34 .29 Korea Electric .16 .13 .15 .20 1.00 .31 .31 .10 Nestl .38 .34 .07 .47 .31 1.00 .32 .05 Sony .13 .44 .41 .34 .31 .32 1.00 .16 Tata Motors .33 .16 .12 .29 .10 .05 .16 1.00 Standard deviation (%) 22.80 32.10 46.06 21.04 30.83 12.70 47.84 42.11
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