Question
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
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 shownbelow.
BHP BillitonSiemensNestlLVMHToronto Dominion BankSamsungBPBHP Billiton1.000.37-0.050.400.580.500.47Siemens1.000.300.210.170.32-0.09Nestl1.000.060.07-0.010.07LVMH1.000.360.540.06Toronto Dominion Bank1.000.200.33Samsung1.000.34BP1.00Standard deviation (%)26.6026.409.1819.0017.7030.1021.80
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.)
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Corporate Financial Reporting And Analysis
Authors: S David Young, Jacob Cohen, Daniel A Bens
4th Edition
111949463X, 9781119494638
