Germany UK Japan Australia Canada France 41 US 445.21 195.18 262.80 145.93 250.41 360.43 246.95 42 Germany 195.18 625.00 276.13 239.40 200.10 210.60 418.95 43 UK 262.80 276.13 552.25 268.79 324.30 296.95 318.80 44 Japan 145.93 239.40 268.79 707.56 190.88 180.51 297.18 45 Australia 250.41 200.10 324.30 190.88 761.76 361.67 249.61 46 Canada 360.43 210.60 296.95 180.51 361.67 547.56 242.75 47 France 246.95 418.95 318.80 297.18 249.61 242.75 707.56   A B C D E F G H 49 C. Border-Multiplied Covariance Matrix for the Equally Weighted Portfolio and Portfolio Variance: 50 Cell Formulas 51 US Germany UK Japan Australia Canada France 52 Weights a53 a54 a55 a56 a57 a58 a59 53 0.1429 a53*b52*b41 a53*c52*c41 a53*d52*d41 a53*e52*e41 a53*f52*f41 a53*g52*g41 a53*h52*h41 54 0.1429 a54*b52*b42 a54*c52*c42 a54*d52*d42 a54*e52*e42 a54*f52*f42 a54*g52*g42 a54*h52*h42 55 0.1429 a55*b52*b43 a55*c52*c43 a55*d52*d43 a55*e52*e43 a55*f52*f43 a55*g52*g43 a55*h52*h43 56 0.1429 a56*b52*b44 a56*c52*c44 a56*d52*d44 a56*e52*e44 a56*f52*f44 a56*g52*g44 a56*h52*h44 57 0.1429 a57*b52*b45 a57*c52*c45 a57*d52*d45 a57*e52*e45 a57*f52*f45 a57*g52*g45 a57*h52*h45 58 0.1429 a58*b52*b46 a58*c52*c46 a58*d52*d46 a58*e52*e46 a58*f52*f46 a58*g52*g46 a58*h52*h46 59 0.1429 a59*b52*b47 a59*c52*c47 a59*d52*d47 a59*e52*e47 a59*f52*f47 a59*g52*g47 a59*h52*h47 60 Sum(a53:a59) sum(b53:b59) sum(c53:c59) sum(d53:d59) sum(e53:e59) sum(f53:f59) sum(g53:g59) sum(h53:h59) 61 Portfolio variance sum(b60:h60) 62 Portfolio SD b61^.5 63 Portfolio mean a53*c6 a54*c7 a55*c8 a56*c9 a57*c10 a58*c11 a59*c12 II. Portfolio Theory 8. Optimal Risky Portfolio The McGraw−Hill Companies, 2001