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	Heineken	Nestl	Sony	TAM	Tata Motors
BHP	1.00	0.34	0.38	0.45	0.14	0.45	0.16	0.29
BP	0.34	1.00	0.29	0.14	0.16	0.36	0.07	0.12
Fiat	0.38	0.29	1.00	0.16	0.17	0.09	0.23	0.14
Heineken	0.45	0.14	0.16	1.00	0.38	0.56	0.12	0.46
Nestl	0.14	0.16	0.17	0.38	1.00	0.15	0.15	0.11
Sony	0.45	0.36	0.09	0.56	0.15	1.00	0.14	0.24
TAM	0.16	0.07	0.23	0.12	0.15	0.14	1.00	0.09
Tata Motors	0.29	0.12	0.14	0.46	0.11	0.24	0.09	1.00
Standard deviation	30.00%	41.80	52.80	28.30	22.00	42.50	50.40	52.50

a.	Calculate the portfolio variance for seven different portfolios. (Do not round intermediate calculations. Enter your answers as a decimal rounded to 5 decimal places.)

	Portfolio Variance
BHP
Fiat
Heineken
Nestle
Sony
TAM
Tata Motors

b.

What is the safest attainable portfolio under these restrictions?

	British Petroleum and BHP
	British Petroleum and Fiat
	British Petroleum and Heineken
	British Petroleum and Nestle
	British Petroleum and Sony
	British Petroleum and TAM
	British Petroleum and Tata Motors