Suppose the average stock has a volatility of 49%, and the correlation between pairs of stocks is
Question:
Suppose the average stock has a volatility of 49%, and the correlation between pairs of stocks is 18%. Estimate the volatility of an equally weighted portfolio with
(a) 1 stock,
(b) 30 stocks,
(c) 1000 stocks.
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Related Book For
Corporate Finance The Core
ISBN: 9781292158334
4th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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