The table below shows standard deviations and correlation coefficients for seven stocks from different countries. Calculate the variance of a portfolio with equal investments in each stock. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Round your answer to 4 decimal places.) BHP Billiton Siemens Toronto Dominion Nestlé LVMH Bank Samsung BP BHP Billiton 1.00 0.26 0.37 0.38 0.21 0.38 0.17 Siemens 1.00 0.30 0.21 0.17 0.32 -0.09 Nestlé 1.00 0.06 0.07 -0.01 0.07 LVMH 1.00 0.36 0.54 -0.10 Toronto Dominion Bank Samsung BP 1.00 0.13 -0.13 1.00 -0.12 1.00 Standard deviation (%) 28.00 39.80 50.80 26.30 20.00 40.50 48.40 Portfolio variance
The table below shows standard deviations and correlation coefficients for seven stocks from different countries. Calculate the variance of a portfolio with equal investments in each stock. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Round your answer to 4 decimal places.) BHP Billiton Siemens Toronto Dominion Nestlé LVMH Bank Samsung BP BHP Billiton 1.00 0.26 0.37 0.38 0.21 0.38 0.17 Siemens 1.00 0.30 0.21 0.17 0.32 -0.09 Nestlé 1.00 0.06 0.07 -0.01 0.07 LVMH 1.00 0.36 0.54 -0.10 Toronto Dominion Bank Samsung BP 1.00 0.13 -0.13 1.00 -0.12 1.00 Standard deviation (%) 28.00 39.80 50.80 26.30 20.00 40.50 48.40 Portfolio variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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pra.4
Transcribed Image Text:The table below shows standard deviations and correlation coefficients for seven stocks from different countries. Calculate the
variance of a portfolio with equal investments in each stock. (Use decimals, not percents, in your calculations. Do not round
intermediate calculations. Round your answer to 4 decimal places.)
BHP
Billiton Siemens
Toronto Dominion
Nestlé
LVMH
Bank
Samsung
BP
BHP Billiton
1.00
0.26
0.37
0.38
0.21
0.38
0.17
Siemens
1.00
0.30
0.21
0.17
0.32
-0.09
Nestlé
1.00
0.06
0.07
-0.01
0.07
LVMH
1.00
0.36
0.54
-0.10
Toronto Dominion Bank
Samsung
BP
1.00
0.13
-0.13
1.00
-0.12
1.00
Standard deviation (%)
28.00
39.80
50.80
26.30
20.00
40.50
48.40
Portfolio variance
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