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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 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 shown below. BHP Billiton Siemens 1.00 0.39 1.00 Nestl -0.05 0.29 1.00 LVMH 0.42 0.14 0.04 1.00 BHP Billiton Siemens Nestl LVMH Toronto Dominion Bank Samsung BP Standard deviation (%) Toronto Dominion Bank 0.60 0.16 0.05 0.38 1.ee Samsung 0.52 0.36 -0.03 0.56 0.20 1.00 BP 0.49 -0.07 0.05 0.06 0.35 0.36 1.00 19.80 28.60 25.40 9.24 20.20 11.70 30.50 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.) Portfolio Variance BHP Siemens Nestl LVMH Toronto Dominion Bank Samsung BP
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