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Question: Calculate the correlation needed to determine the total risk for the foreign portfolio.

a. Write the excel formula used. Use the column/row indicators shown in Table 1.

b. Calculate and then bold/highlight the final solution.

c. Comment on whether the correlation is good or bad relative to domestic security correlations.

Table 1	Global Portfolio Data
Date	Lotos (PLN)	Lotos (USD)	Div.	ROPC_L	USD T-bond (%)	ROPC_b	FX = zl/$	FX = $/zl	ROPC_fx	ROPC_fp	Joint ROPC_gp
15-Sep	253.74	66.27			145.1406		3.8289	0.2612
22-Sep	271.43	71.03			145.4788		3.8214	0.2617
29-Sep	309.08	78.01			144.6211		3.9621	0.2524
6-Oct	273.64	67.92			142.7324		4.0289	0.2482
13-Oct	251.2	67.27			140.0375		3.7342	0.2678
20-Oct	220.57	61.02	zl3.187		139.0325		3.6147	0.2766
27-Oct	220.99	61.96			138.9878		3.5667	0.2804
3-Nov	229.65	63.91	$0.832		138.4261		3.5933	0.2783
10-Nov	271.02	64.85			139.9121		3.6209	0.2762
							Pip = 4
	Which one?						Which one?

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