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. The table provides estimates of the standard deviations of returns for each stock and the correlation between the returns of each pair of stocks.

	BHP	BP	Fiat Chrysler	Heineken	Korea Electric	Nestl	Sony	Tata Motors
BHP	1.00	.42	.38	.16	.33	-.03	.19	.50
BP	.42	1.00	.40	.25	.26	.12	.41	.29
Fiat	.38	.40	1.00	.17	.19	-.10	.44	.32
Heineken	.16	.25	.17	1.00	.17	.44	.37	.26
Korea Electric	.33	.26	.19	.17	1.00	.01	.16	.13
Nestl	-.03	.12	-.10	.44	.01	1.00	.23	.08
Sony	.19	.41	.44	.37	.16	.23	1.00	.19
Tata Motors	.50	.29	.32	.26	.13	.08	.19	1.00
Standard deviation (%)	19.80	29.10	43.06	18.04	27.83	9.70	44.84	39.11

You decided to invest your $50,000 in Sony.

Calculate your portfolio variance.

Select one:

a. 0.03587

b. 0.04307

c. 0.09819

d. 0.02522