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 Nestlé LVMH Toronto Dominion Bank Samsung BP BHP Billiton Siemens 1.00 0.32 0.42 0.36 0.22 0.36 0.19 1.00 0.33 0.22 0.19 0.36 -0.09 Nestlé LVMH 1.00 0.12 0.13 0.05 0.13 1.00 0.30 0.48 -0.04 Toronto Dominion Bank Samsung 1.00 0.07 -0.07 1.00 -0.06 BP 1.00 Standard deviation (%) 22.00 33.80 44.80 20.30 14.00 34.50 42.40 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 Nestlé LVMH Toronto Dominion Bank Samsung BP BHP Billiton Siemens 1.00 0.32 0.42 0.36 0.22 0.36 0.19 1.00 0.33 0.22 0.19 0.36 -0.09 Nestlé LVMH 1.00 0.12 0.13 0.05 0.13 1.00 0.30 0.48 -0.04 Toronto Dominion Bank Samsung 1.00 0.07 -0.07 1.00 -0.06 BP 1.00 Standard deviation (%) 22.00 33.80 44.80 20.30 14.00 34.50 42.40 Portfolio variance
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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
Nestlé
LVMH
Toronto
Dominion Bank
Samsung
BP
BHP Billiton
Siemens
1.00
0.32
0.42
0.36
0.22
0.36
0.19
1.00
0.33
0.22
0.19
0.36
-0.09
Nestlé
LVMH
1.00
0.12
0.13
0.05
0.13
1.00
0.30
0.48
-0.04
Toronto Dominion Bank
Samsung
1.00
0.07
-0.07
1.00
-0.06
BP
1.00
Standard deviation (%)
22.00
33.80
44.80
20.30
14.00
34.50
42.40
Portfolio variance
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