a. How many variance terms and how many covariance terms do you need to calculate the risk

Question:

a. How many variance terms and how many covariance terms do you need to calculate the risk of a 100-share portfolio?

b. Suppose all stocks had a standard deviation of 30 percent and a correlation with each other of .4. What is the standard deviation of the returns on a portfolio that has equal holdings in 50 stocks?

c. What is the standard deviation of a fully diversified portfolio of such stocks?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...