Calculate the beta of each of the stocks in Table 7.9 relative to a portfolio with equal investments in each stock.
TABLE7.9 Standard deviations of returns and correlation coefficients for a sample of eight stocks.
Correlation Coefficients | |||||||||
| BP | Canadian Pacific | Deutsche Bank | Fiat | Heineken | LVMH | Nestlé; | Tata Motors | Standard Deviation |
BP | 1 | 0.19 | 0.23 | 0.20 | 0.34 | 0.30 | 0.16 | 0.09 | 22.2% |
Canadian Pacific |
| 1 | 0.43 | 0.31 | 0.39 | 0.34 | 0.17 | 0.40 | 23.9 |
Deutsche Bank |
|
| 1 | 0.74 | 0.73 | 0.73 | 0.49 | 0.68 | 29.2 |
Fiat |
|
|
| 1 | 0.66 | 0.64 | 0.47 | 0.53 | 35.7 |
Heineken |
|
|
|
| 1 | 0.64 | 0.51 | 0.50 | 18.9 |
LVMH |
|
|
|
|
| 1 | 0.52 | 0.60 | 20.8 |
Nestlé |
|
|
|
|
|
| 1 | 0.43 | 15.4 |
Tata Motors |
|
|
|
|
|
|
| 1 | 43.0 |
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.