Suppose the average stock has a volatility of 49%, and the correlation between pairs of stocks is

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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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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Feb 29, 2024 04:01 AM

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Suppose the average stock has a volatility of 49%, and the correlation between pairs of stocks is

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Volatility of Equally Weighted Portfolio We can estimate the volatility of an equally weighted portf...View the full answer

Corporate Finance The Core

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