Calculate the variance of a portfolio with equal investments

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Reference no: EM13680199

The table below shows standard deviations and correlation coefficients for eight stocks from different countries.

BHP BP Fiat Heineken Nestlé Sony TAM Tata Motors
BHP 1.00 0.31 0.36 0.40 0.14 0.40 0.14 0.28
BP 0.31 1.00 0.28 0.14 0.14 0.32 -0.10 0.11
Fiat 0.36 0.28 1.00 0.19 0.20 0.12 -0.20 0.17
Heineken 0.40 0.14 0.19 1.00 0.35 0.53 -0.09 0.43
Nestlé 0.14 0.14 0.20 0.35 1.00 0.12 -0.12 0.14
Sony 0.40 0.32 0.12 0.53 0.12 1.00 -0.11 0.26
TAM 0.14 -0.10 -0.20 -0.09 -0.12 -0.11 1.00 0.11
Tata Motors 0.28 0.11 0.17 0.43 0.14 0.26 0.11 1.00
Standard deviation 27.00% 38.80 49.80 25.30 19.00 39.50 47.40 49.50

Calculate the variance of a portfolio with equal investments in each stock. (Do not round intermediate calculations. Enter your answer as a decimal rounded to 5 places.)

Reference no: EM13680199

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