How does the volatility of an equally weighted portfolio change as more stocks are added to it?

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Corporate Finance

ISBN: 9780132992473

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Mar 07, 2024 01:01 AM

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How does the volatility of an equally weighted portfolio change as more stocks are added to it?

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In general as you add more uncorrelated stocks to an equally weighted portfolio the volatility of the portfolio tends to decrease This phenomenon is r...View the full answer

Corporate Finance

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