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Your eccentric Aunt Claudia has left you $50,000 in BP shares plus $50,000 cash. Unfortunately, her will requires that the BP stock not be
Your eccentric Aunt Claudia has left you $50,000 in BP shares plus $50,000 cash. Unfortunately, her will requires that the BP stock not be sold for one year and the $50,000 cash must be entirely invested in one of the stocks shown below. BHP Billiton Siemens Nestl LVMH Toronto Dominion Bank Samsung BP Standard deviation (8) BHP Billiton Siemens Nestl LVMH Toronto Dominion Bank Samsung BP 1.00 0.27 1.00 -0.03 0.30 0.48 0.40 0.37 0.34 0.17 0.12 0.33 0.28 1.00 0.16 0.17 0.09 0.17 1.00 0.15 0.29 0.06 1.00 0.20 0.23 1.00 0.24 1.00 34.10 26.90 11.15 17.40 23.70 28.10 24.80 a. Calculate the portfolio variance for seven different portfolios. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answers as a decimal rounded to 5 places.) BHP Siemens Nestl LVMH Toronto Dominion Bank Samsung BP Portfolio Variance 0.16290
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