18. Consider two portfolios, one composed of four securities and the other of ten securities. All the

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18. Consider two portfolios, one composed of four securities and the other of ten securities. All the securities have a beta of 1 and unique risk of 30%. Each portfolio distributes weight equally among its component securities. If the standard deviation of the market index is 20%, calculate the total risk of both portfolios.

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Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

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