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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 | .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 |
Portfolio variance ______________
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