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	.32	.35	.43	.22	.43	.15	.34
BP	.32	1.00	.34	.22	.15	.29	.42	.17
Fiat Chrysler	.35	.34	1.00	.16	.17	.09	.43	.14
Heineken	.43	.22	.16	1.00	.18	.45	.36	.27
Korea Electric	.22	.15	.17	.18	1.00	.01	.16	.13
Nestl	.43	.29	.09	.45	.01	1.00	.23	.08
Sony	.15	.42	.43	.36	.16	.23	1.00	.19
Tata Motors	.34	.17	.14	.27	.13	.08	.19	1.00
Standard deviation (%)	20.80	30.10	44.06	17.54	28.83	9.90	45.24	39.41

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
Fiat Chrylser
Heinkenen
Korea Electric
Nestl
Sony
Tata Motors

b. What is the safest attainable portfolio under these restrictions?

	BP and BHP
	BP and Fiat
	BP and Heineken
	BP and Nestl
	BP and Sony
	BP and Korea Electric
	BP and Tata Motors